Volume-Weighted Average Price (VWAP)

What is VWAP?

VWAP represents the average price of an asset weighted by traded volume over a session or defined window. It provides a fair-value benchmark used by institutions and retail traders alike. VWAP Example

How the VWAP Indicator Works

VWAP accumulates (Price × Volume) and divides by cumulative Volume over the session:

VWAP = Σ(Price × Volume) / Σ(Volume)

Interpretation:

  • Above VWAP: Bullish intraday bias; Below VWAP: Bearish bias.
  • VWAP can act as dynamic support/resistance.

Available Settings in FutPrint

  • Session Reset: Daily/session-based (default)
  • Bands (optional): Standard deviations around VWAP (if enabled)
  • Style: Line color, thickness; band colors

Practical Usage and Best Practices

  • Use as a fairness reference for entries/exits.
  • Combine with higher-timeframe levels for confluence.
  • In mean-reverting contexts, look for reversion to VWAP after extensions.

Limitations:

  • During strong trends, price may remain far from VWAP; avoid countertrend trades without confirmation.

Using VWAP in the Platform

  1. Add VWAP from Trend & Directional indicators.
  2. Configure session handling and optional deviation bands.
  3. Customize visual styles.

See Also