🧠 What is VWAP?
The VWAP (Volume Weighted Average Price) is a popular trading indicator that shows the average price of a stock based on both price and volume.
👉 Used by:
- Intraday traders ⚡
- Institutions 🏦
- Scalpers 📈
It helps identify:
- Fair market price
- Trend direction
- Buy & sell opportunities
📐 VWAP Formula
VWAP=∑Volume∑(Price×Volume)
📊 How VWAP Works
🟢 Price Above VWAP
- Bullish trend 🚀
- Buyers in control
🔴 Price Below VWAP
- Bearish trend 📉
- Sellers in control
⚖️ Price Near VWAP
- Fair value zone
- Market equilibrium
📈 Buy & Sell Signals
✅ Buy Signal
- Price crosses above VWAP
- Volume increases 📊
👉 Bullish momentum likely
❌ Sell Signal
- Price falls below VWAP
- Weak market sentiment 📉
👉 Bearish momentum likely
🎯 Trading Strategy
Buy Setup 🚀
- Price above VWAP
- Pullback near VWAP support
- Bullish candlestick confirmation
Sell Setup 📉
- Price below VWAP
- Rejection from VWAP resistance
- Bearish confirmation candle
⚠️ Important Tips
✔ Best for intraday trading
✔ Works well with volume analysis
✔ Avoid using alone in sideways markets
Combine With:
- RSI
- MACD
- Supertrend
- Price Action
🧠 Key Takeaway
👉 VWAP = Fair Price + Trend Direction
👉 Excellent for:
- Intraday trading
- Institutional trading
- Trend confirmation