VWAP Trading Guide

VWAP (Volume-Weighted Average Price) is the average price weighted by volume across the trading session. Institutions use VWAP as a fair-value benchmark for execution. Retail can read deviations from VWAP as bias signals.

What VWAP measures

VWAP answers: 'what is the average price institutions paid today, weighted by how much they bought at each level?' Above VWAP = buyers in control; below = sellers.

Trading the deviation

Mean-reversion plays target a VWAP retest. Trend continuation plays use VWAP as a trailing support/resistance. The Omni Trade Edge engine annotates VWAP distance on every chart.