Basic VWAP Logic

November 12th, 2020

VWAP is one of the most commonly used algorithms among large trading institutions, helping to indicate support & resistance areas as well as finely tune entry & exit levels.

VWAP is plotted as a simple line, similar to a standard moving average but weighted by volume, meaning areas where volume was higher are more important. It is sometimes displayed with standard deviation lines above & below it.

Ideal for many trading approaches, VWAP can help with the technical analysis of futures, stocks & forex. Additionally it can be incorporated within any time frame, such as intraday, swing or long-term trading.

As Trader Dale explains in his webinar Discover VWAP Trading Strategies, “The good thing about VWAP is that you can use it with all trading instruments.”

Learn more in this 1-minute clip:

Enjoy this clip? Check out our other trading videos Buy & Sell Signals and How to Use Volume Profile!


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