Volume
VWAP (Volume Weighted Average Price)
VWAP is the average price of the day weighted by volume. It starts fresh every session, so it is mainly used on intraday charts.
How to read it
- Price above VWAP means buyers have paid more than the day's average; below means sellers are in control.
- Many intraday traders look for pullbacks to VWAP in a trending day.
- Large institutions often compare their fills with VWAP.
Settings
No length: it uses the whole session (typical price = (high + low + close) ÷ 3).
Example rule to test
Rule to test on 15-minute candles: enter when the price crosses above VWAP, exit at the day's end.
Common mistake
Using VWAP on daily or weekly charts, where it resets every candle and means little.
Try it free on iTradeChart
For learning only. Backtests use past data and do not guarantee future results. Not investment advice.