VWAP means Volume-Weighted Average Price. It is an average-price reference that gives each price contribution weight according to traded volume over the selected data and time window.
Key concepts
- Session VWAP
- VWAP accumulated for the chart's current session. The chart's trading-hours template affects where that calculation resets.
- Standard deviation (σ)
- A statistical way to describe dispersion. The +1σ, −1σ, +2σ, and −2σ bands are plotted relative to VWAP.
Learn it step by step
- 1Display the VWAP line first and check that the session start matches the chart settings.
- 2Add the ±1σ and ±2σ bands if useful, and note the data and settings used.
- 3Describe where price is relative to these lines; do not treat a line by itself as a forecast.
Calculations and plotted values can differ with the indicator configuration and data source.