VWAPVolume Weighted Average Price
The average price weighted by volume — institutions use it as a fair-value benchmark for execution. Price reverting to VWAP is highly common intraday.
VWAP is the volume-weighted average price for a trading session. Every institutional desk is benchmarked against it: fund managers are evaluated on whether they bought below VWAP or sold above. This makes VWAP a magnetic level — institutions deliberately push price toward it to get fair fills.
Intraday traders use VWAP as dynamic S/R. A 'VWAP reclaim' = price closing back through VWAP after being away → strong continuation signal. Pair VWAP with Volume Profile (POC/VAH/VAL) for the cleanest day-trading framework that exists. Best on stocks/futures during regular session hours.
Strategies that use VWAP
Browse more terms
Apply VWAP on a real chart
Drop a chart, and TradeLens AI shows you where VWAP appears — in seconds.
Try it free