Cumulative price × volume divided by cumulative volume. The "average price everyone paid today" — the institutional benchmark.
VWAP = Σ(Typical × Volume) / Σ(Volume), Typical = (H+L+C)/3
Intraday fair-value anchor, pullback entries in trending sessions (buy above VWAP on RSI dip), mean-reversion targets in range days.
Loses meaning across sessions — usually anchored from open. Very low-volume periods can make VWAP drift.
Nifty 50 15-min bars with VWAP (Volume-Weighted Average Price) pre-loaded:
3 strategies use VWAP (Volume-Weighted Average Price):