Technical
What is VWAP (Volume-Weighted Average Price)?
The average price paid per share over a period, weighting each day by its traded volume β the market's true average cost basis rather than a simple average of closes.
Formula
VWAP = Ξ£ (Price Γ Volume) Γ· Ξ£ Volume
How to Interpret
Price above a long-period VWAP means the average recent buyer is in profit β usually supportive; below it, the average holder is underwater, which can cap rallies. Institutions benchmark execution against VWAP, making it self-reinforcing as support/resistance.
Typical Ranges
A 252-day VWAP approximates the average entry price of the past year's buyers. Thinly traded assets produce noisy VWAPs, since a few large days dominate the weighting.
Find Stocks Using This Signal
Screen US and Indian stocks by VWAP in the Technical Screener.