What VWAP shows
Volume Weighted Average Price: the average price paid today, counting each trade by its size.
Indicator guide · Moving averages
VWAP: what it shows, settings and how to read it.
Volume Weighted Average Price: the average price paid today, counting each trade by its size.
How it is calculated
For every candle since the day started, multiply the typical price (high + low + close, divided by 3) by the volume, add them up and divide by the total volume.
Usual settings
There is nothing to set: it restarts at the beginning of each day.
How traders read it
Day traders treat price above VWAP as buyers in control and below as sellers in control; big funds use it as a fair-price benchmark.
Where it fails
It resets every day, so it matters most on intraday charts.
What to combine it with
Volume and the day's high and low. Many day traders only buy above VWAP and only sell below it.
Try VWAP on a live chart
Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose VWAP. Click its name on the chart to change the settings. It is free for every member.
More in "Moving averages": EMA · SMA · WMA · HMA · All 25 indicators
Questions
Frequently asked questions
What is the VWAP indicator?
Volume Weighted Average Price: the average price paid today, counting each trade by its size.
What are the best settings for VWAP?
The usual settings are: There is nothing to set: it restarts at the beginning of each day. No setting is best in every market, so test a change on past data before relying on it.
Is VWAP reliable on its own?
No single indicator is. It resets every day, so it matters most on intraday charts. Most traders use it together with: Volume and the day's high and low. Many day traders only buy above VWAP and only sell below it.
How do I add VWAP to a chart for free?
Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose VWAP. Click its name on the chart to change the settings. It is free for every member.
This page is education, not investment advice. Trading involves substantial risk of loss. Read next: Trading indicators · Trading strategies · Candlestick patterns