Blog : VWAP - Volume Weighted Average Price Indicator
VWAP - Volume Weighted Average Price
VWAP (Volume-Weighted Average Price): The average price of a security, weighted by volume, showing the average trading price throughout the trading session. It provides insight into the true average price paid by investors and is used to identify trading trends.
Inputs | |||
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Trend Following | Mean Reversion | ||
Anchor | Daily | Anchor | Daily |
Source | hlc3 | Source | hlc3 |
VWAP | Long - Entry Trigger | Long - Exit Trigger | Short - Entry Trigger | Short - Exit Trigger |
---|---|---|---|---|
Trend Following | Price crossover VWAP | Price crossunder VWAP | Price crossunder VWAP | Price crossover VWAP |
Mean Reversion | Price crossunder VWAP | Price crossover VWAP | Price crossover VWAP | Price crossunder VWAP |
VWAP | Long - Entry Confluence | Long - Exit Confluence | Short - Entry Confluence | Short - Exit Confluence |
Trend Following | Price > VWAP | Price < VWAP | Price < VWAP | Price > VWAP |
Mean Reversion | Price < VWAP | Price > VWAP | Price > VWAP | Price < VWAP |