loading...
The institutional benchmark - where big money measures fair value throughout the trading day
VWAP (Volume Weighted Average Price) is the average price weighted by volume over a trading period. It shows where the majority of volume has traded - essentially, the "fair value" of an asset during the session.
Why institutions use it: Large traders use VWAP as a benchmark. If they buy below VWAP, they got a good price. If they sell above VWAP, they sold at a premium. Many algorithms are programmed to execute around VWAP.
Important: Standard VWAP resets at the start of each trading day. In 24/7 crypto markets, it typically resets at midnight UTC. This makes it primarily an intraday indicator.
Institutional traders live by VWAP. If you're day trading, price above VWAP favors longs and price below favors shorts. It's that simple for intraday bias. Don't overthink it.
Indicators confirm what price action shows. They don't replace it. Never trade based on an indicator signal alone. Always combine with chart structure, pattern recognition, and volume analysis.
The Academy teaches when to use this indicator, when to ignore it, and how to combine it for high-probability setups.
Join Academy →