vwapdef
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Table of Contents
📘 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
