Technical analysis · Intermediate

VWAP: Volume Weighted Average Price

A 1-minute lesson from the MarketPro academy, one of 26 in technical analysis.

Last reviewed 15 September 2026 by the MarketPro research desk · Editorial policy

Short answer

The Volume Weighted Average Price (VWAP) calculates the average price a security has traded at during a session, weighted by the volume at each price level, giving a running benchmark for where most of the day's activity has occurred. Because it resets at the start of each session and weights by volume, VWAP is widely used as an intraday reference rather than a longer-term trend tool.

Because it resets at the start of each session and weights by volume, VWAP is widely used as an intraday reference rather than a longer-term trend tool.

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Above/below VWAP: Price trading above VWAP is often read as a sign the session is skewed bullish, and below it as bearish.
Institutional benchmark: Larger participants sometimes use VWAP to judge whether their own execution price was favorable relative to the day's activity.
Bands: Some traders add standard deviation bands around VWAP, similar in concept to Bollinger Bands, to flag stretched moves away from the average.

VWAP is descriptive of what already happened during the session rather than predictive of what comes next, and it becomes less meaningful as a reference the further a session progresses from its open, since early trades weigh heavily on the average.

Lesson 21 of 26 in Technical analysis

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Written and reviewed by the MarketPro research desk

MarketPro is a trading-signal and trading-education app operated by Harajuku Holdings LTD (Cyprus). Our signal desk publishes and tracks every trade idea in-app, and every page here is checked against the app's live behaviour before publishing. Last reviewed 15 September 2026. How we produce signals and content · About MarketPro

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