◆ Indicator · VWAP

VWAP : volume-weighted average price

VWAP (Volume Weighted Average Price) shows the average price at which the asset traded, weighted by volume, since the session started. This guide covers its calculation, how to read it and how to apply it on GraphTrade charts.

Live preview · ChartsLIVE

Volume

weighting

±2σ

bands

Intraday

use

01 · Indicator · VWAP

What is VWAP?

VWAP (Volume Weighted Average Price) shows the average price at which the asset traded, weighted by volume, since the session started.

It is a central guide for intraday traders and execution desks.

02 · Indicator · VWAP

The calculation

VWAP = Σ (typical price × volume) / Σ volume, with typical price = (High + Low + Close) / 3.

VWAP bands add ±1 and ±2 standard deviations around it.

03 · Indicator · VWAP

Reading the signals

Price above VWAP: buyers in control of the session; below: sellers.

±2σ bands mark frequent excesses that revert to the mean.

04 · Indicator · VWAP

Settings and combinations

VWAP and VWAP ±1σ ±2σ bands are in the Volume group. It pairs well with: Pivot Points, OBV (On-Balance Volume), MFI (Money Flow Index).

To put the signal in context, check the Heatmap, the news or ask the AI Compass. No indicator is investment advice.

◆ Step by step

Get started in 4 steps

  1. 01

    Open a chart

    Search for an asset on the Charts page and pick a timeframe.

  2. 02

    Add the indicator

    Open Indicators, Volume group, then click VWAP.

  3. 03

    Adjust the settings

    Change the parameters in the indicator sheet to suit your horizon.

  4. 04

    Confirm the signal

    Cross-check with the main trend and another indicator before concluding.

Apply on a chart

◆ FAQ

Your questions, clear answers.

01

Is VWAP useful for swing trading?

It is most relevant intraday because it resets each session.

02

What are VWAP bands?

Standard deviations around VWAP to measure how far price has strayed.

03

VWAP in crypto?

The session resets at 00:00 UTC.

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