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vwapdef

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📘 What is VWAP?

VWAP stands for Volume Weighted Average Price.

🔍 Definition

VWAP is a trading indicator that shows the average price a security has traded at throughout the day, weighted by volume. It provides a real-time view of where most trading activity is happening.

🧠 Why Traders Use It

  • Institutions use it to gauge fair value throughout the day.
  • Scalpers and day traders use it as dynamic support/resistance.
  • Helps identify whether price is trading above or below average value.

📈 How It's Interpreted

  • Price above VWAP → Bullish bias – buyers are in control
  • Price below VWAP → Bearish bias – sellers are in control
  • Price bouncing off VWAP → Potential entry for trend continuation
  • Price crossing VWAP → Possible shift in intraday sentiment

Let me know if you'd like a visual example or script to plot VWAP!

vwapdef.1743915737.txt.gz · Last modified: 2025/04/06 05:02 by lwattsii