What is VWAP?

VWAP is the average price at which a security has traded throughout the day, calculated based on both volume and price. It is calculated intraday and considers one day’s trading activity.

VWAP serves as a benchmark for individuals and institutions to assess whether they achieved good or poor execution of their orders.

General Strategies

When a security is trending, VWAP provides valuable market information.

  • If the price is above VWAP, it’s a good intraday selling opportunity.
  • If the price is below VWAP, it’s a good intraday buying opportunity.Buying securities below VWAP means achieving a better-than-average price by the end of the day.

Where do you find it in the TFG app?

The VWAP can be located in two areas:

  1. The watchlist
    Search for the VWAP column
    2. The order pad
    To display the VWAP, in the bottom right click Show More
  • To find out where to view the VWAP in Watchlist and Order Pad, check out the videos.


    Order Pad

    Read More

You can download the offline guide here Volume Weighted Average Price Guide

What you learn here has been used in our Trade for Good software.
Click on the button to find our software education videos.

Software Videos

You can read more of our educational articles in the Trade for Good Learn section
Trade for Good Learn