Trends/Volume and money flow

VWAP

The average price paid during the day, weighting each trade by its size.

Volume and money flowBest on 1D, 5DAlso called volume-weighted average price

Illustration of the VWAP shape. It is a sketch, not real price data.

What it shows

VWAP = the sum of price × volume divided by the sum of volume since the start of the session. A trade of 1,000 shares counts ten times as much as a trade of 100.

It resets every day. It is mostly used on intraday charts.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

For each bar, typical price × volume.
Running sum of that.
Divide by running sum of volume.
Reset at the start of each session.

Starting values: Reset each session; Price typical price. These are proposed and will be tuned on real price data before launch.

How to read it

The gold line is VWAP.
Price above it: the day's average trade was below the current price.
It starts at the first price and settles as volume builds.

Status labels you may see

Label	What it means
Above VWAP	Close is above VWAP.
Below VWAP	Close is below VWAP.
At VWAP	Within 0.2%.

What cancels it

It resets at the start of each session.

What traders check next

How far price is from VWAP.
How many times price crossed it.
Volume trend over the day.

Limits

Only meaningful on intraday data.
Late in the day it moves little.
Large trades far from the price can shift it.

Try it in forecastviz

Open any ticker and choose Volume and money flow → VWAP in the left menu.
Switch between 1D, 5D to see how the picture changes.
Compare with Anchored VWAP and Volume profile on the same chart.

Open on a ticker

Questions

Why do institutions watch it?

It is a benchmark for the average price of an order.

Can I use it on daily bars?

Only with anchored versions.