VWAP

The VWAP indicator computes the volume-weighted average price of a session, summing each bar's price multiplied by its volume and dividing by the cumulative volume from the anchor point, then resetting when a new period begins. The anchor defaults to the trading day, with week and month options, and bands can be toggled at plus or minus 1, 2, and 3 standard deviations (or fixed percentages) around the VWAP line. This is the standard, raw implementation of session VWAP with no modifications.

Volume does the weighting: busy bars pull the line far harder than quiet ones, one reason the level is watched so closely intraday.

How to Trade the VWAP?

• Price above the VWAP: the period's average fill sits below price, an intraday bias many traders require before longs.
• Price below the VWAP: sellers control the period's average; rallies into the line are candidate fades.
• Crosses of the VWAP line: a shift of intraday control, unreliable in thin tape without follow-through.
• Touches of the outer bands: often rotate back toward the line in balanced sessions; riding a band marks a one-sided trend.

VWAP Settings

• Anchor Period (default Session): where the calculation resets, at the first bar of each trading day, week, or month.
• Source (default hlc3): the price entering the weighted average.
• Bands Mode (default Standard Deviation): deviation or fixed-percentage band offsets.
• Band #1 (default on, multiplier 1.0), Band #2 (default off, 2.0), Band #3 (default off, 3.0): toggle each pair and set its distance.
• Hide VWAP on 1D or Above (default on): hides the plot on daily and higher timeframes.
• Bands Fill (default on): shades the area between each visible band pair.

VWAP Alerts

Two alert conditions track the line: Price Crossed Above VWAP and Price Crossed Below VWAP, firing when the close crosses the running average.

Frequently Asked Questions

How is session VWAP different from an anchored VWAP?

Should I use standard deviation or percentage bands?

Why does the VWAP disappear on daily charts?