Indicator — VWAP

VWAP (volume-weighted average price) is the average price paid over a period, weighted by how much traded at each price. It is the benchmark most institutions are measured against, so price above VWAP is generally read as buyers in control for the period, and price below it as sellers.

Module
VWAP
How to open
Chart ▸ Indicators ▸ Trend & Directional ▸ VWAP
Data source
Price and volume per candle
Saved in workspace
Yes
A candlestick chart with a daily VWAP line restarting each session (dark theme)
Daily VWAP on its own: the line restarts at the start of each day.

Settings

Open Indicators, click the VWAP entry under Added, and use the Settings pane.

Inputs

The Inputs group of the VWAP settings (dark theme)
Inputs.
SettingWhat it does
SourceThe price used for each candle: CLOSE, OPEN, HIGH, LOW, HL2 (high+low)/2, HLC3 (high+low+close)/3 or OHLC4. HLC3 is the usual choice.
Anchor PeriodWhere the calculation restarts: Daily, Weekly, Monthly, Yearly, Session, Custom or Lookback.
Anchor Time(Custom) The date and time the VWAP starts from.
Lookback Candles(Lookback) Number of candles to look back from the most recent candle.
Daily VWAP with deviation bands (dark theme)
Anchor Period = Daily
Weekly VWAP with deviation bands (dark theme)
Weekly
Monthly VWAP with deviation bands (dark theme)
Monthly
Session VWAP with deviation bands (dark theme)
Session
VWAP calculated over the last 50 candles (dark theme)
Anchor Period = Lookback, Lookback Candles = 50: a rolling VWAP of the most recent candles.
Daily VWAP calculated from closing prices (dark theme)
Source = CLOSE.

Bands & Fills

Deviation bands are drawn a set number of standard deviations above and below the VWAP. They frame how far price has stretched from the average.

The Bands and Fills group of the VWAP settings (dark theme)
Bands & Fills.
SettingWhat it does
Show Deviation BandsTurn the bands on.
Band 1 / 2 / 3 MultiplierDistance of each band from the VWAP in standard deviations. Set a multiplier to 0 to hide that band.
Show FillsShade the area between the bands.
Inner / Middle / Outer FillColours of the shaded zones.
VWAP line only (dark theme)
Bands off
VWAP with three deviation bands (dark theme)
Show Deviation Bands (1, 2, 3)
VWAP with three deviation bands and fills (dark theme)
Show Fills on
VWAP with two deviation bands (dark theme)
Band 3 Multiplier = 0: two bands only

Line Styles

One row each for the VWAP Line and the upper and lower lines of bands 1, 2 and 3 — in that order — with a colour, a width and a style (Solid, Dashed or Dotted). Rows for a band appear only while that band is shown.

The Line Styles group of the VWAP settings (dark theme)
Line Styles.
Tip

The default line colours are subtle. If the VWAP is hard to see on your chart, raise the VWAP Line width to 2 or pick a brighter colour here.

Using VWAP

  • Bias — above VWAP favours longs for the period, below favours shorts.
  • Mean reversion — moves to the second or third band are stretched; many traders look for a return toward VWAP from there.
  • Higher-timeframe context — add a second VWAP with a Weekly or Monthly anchor to see where the larger average sits.
← PreviousCumulative Volume DeltaNext →Chart Settings