VWAP (Volume Weighted Average Price)
The average price of a stock weighted by volume throughout the trading day, acting as a benchmark for institutional execution quality.
Explained Simply
VWAP is calculated by dividing the total dollar value traded by the total volume traded. It resets each trading day. Institutions use VWAP as a benchmark — buying below VWAP is considered good execution; selling above it is good. Retail traders use VWAP as a dynamic support/resistance level and trend indicator. Price consistently above VWAP = bullish intraday trend; below VWAP = bearish. VWAP crosses are commonly used as intraday entry/exit signals.
How Tradewink Uses VWAP (Volume Weighted Average Price)
VWAP is a key intraday indicator in Tradewink's day trading module. Our day trade scanner uses VWAP as a trend filter — long setups require price above VWAP, short setups require price below VWAP. VWAP reclaims (price crossing back above after being below) are high-probability momentum signals. The anchored VWAP from prior earnings or major swing points is also tracked for key levels.
Related Terms
See VWAP (Volume Weighted Average Price) in action
Tradewink uses vwap (volume weighted average price) as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.