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What the heck is the VWAP indicator? Let's take a look

Volume Weighted Average Price (VWAP) is a technical indicator that measures the average price weighted by volume.

VWAP is typically used with intraday charts as a way to identify market trends and determine the general direction of intraday prices

VWAP it can be used just like moving averages:

  • When price crosses above it, it indicates that we are in an intraday uptrend. Stay long until price crosses below it.
  • When price crosses below it, it indicates that we are in an intraday downtrend. Sell or go short when price crosses below it.

Watch the video below to get the technical insights.


Please note that no indicator should be used alone. VWAP is no different.

In order to make a complete analysis you need to look at a variety of other factors, such as technical and candlestick patterns, breakouts or breakdowns, volume activity, and obviously, price action.


Trading Risk Disclaimer

All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is not an offer to buy or sell stocks, cryptos, forex, futures, options, commodity interests or any other trading securities.

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