VWAP
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Total Volume
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Total Value
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When Should You Use This?
Use VWAP to assess whether you bought above or below the day's fair price. Day traders use VWAP as dynamic support/resistance. Institutional traders use it to benchmark execution quality.
How It Works
1
Enter Price Data
Input comma-separated prices for each period (candle). These can be typical prices (H+L+C)/3 or close prices.
2
Enter Volume Data
Input matching comma-separated volume for each period. Must have the same number of entries as prices.
3
Read VWAP
VWAP above current price = bearish bias (stock is below fair value). VWAP below current price = bullish bias.
Frequently Asked Questions
VWAP (Volume Weighted Average Price) is the average price weighted by volume. It shows the true average price at which shares traded during a session. A stock trading above VWAP is considered bullish; below is bearish.
Institutional traders benchmark their execution against VWAP. If they bought below VWAP, they got a better-than-average fill. Many algorithmic trading strategies aim to execute at or below VWAP.
VWAP resets daily, so it's primarily a day-trading tool. However, anchored VWAP (starting from a significant event like earnings) can be used on any timeframe.
SMA treats every price equally. VWAP weights by volume, so high-volume periods count more. This makes VWAP a better measure of where the 'real' trading happened.
VWAP bands (1 and 2 standard deviations from VWAP) act like Bollinger Bands around VWAP. Price at +2 SD is overextended; at -2 SD is oversold relative to volume-weighted fair value.