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Indicators

VWAP (volume-weighted average price)

The average price of the day weighted by volume, reset every session. Institutions use it as a benchmark for fair price.

1.309321.315881.322451.329011.33557VWAPDecision pointWhat happened next →
Real example: EUR/USD, 15-minute chart, 2012-04-04. Pattern detected automatically using only the candles before the decision point; on the right, what happened next.

Why it works

Price above VWAP means buyers are in control for the day; below, sellers. Large orders are often executed around it.

How to use it

In an intraday uptrend, look for buys when price pulls back to VWAP and holds. A clean break below can flip the day’s bias.

The typical mistake

Using yesterday’s VWAP for today: it resets every session.

FAQ

What is VWAP in trading?

The average price of the day weighted by volume, reset every session. Institutions use it as a benchmark for fair price.

How do you trade VWAP?

In an intraday uptrend, look for buys when price pulls back to VWAP and holds. A clean break below can flip the day’s bias.