The Volume Weighted Average Price (VWAP) or Moving Volume Weighted Average Price (MVWAP) is a trading benchmark used by traders that gives the average price a security has traded at throughout the day, based on both volume and price. It is important because it provides traders with insight into both the trend and value of a security.


The VWAP is interpreted as follows:

  • If the price is above the VWAP line, this is often considered a bullish signal. The stock is said to be trading 'at a premium' to the VWAP.

  • If the price is below the VWAP line, this is often considered a bearish signal. The stock is said to be trading 'at a discount' to the VWAP.

Indicator Triggers:

In Zone: Price is greater/lower than the VWAP

Price cross up/down the VWAP

We consider only body closes for this trigger. If the price cross up/down the VWAP line, but the candle body close is coming back to the initial side, no signal will be triggered.

Price sustain X % above/under the VWAP

Touch VWAP Line

The touch line trigger considers the value of the VWAP line at the close of the previous candle (since the current value is not known, as it has not closed yet).

Option : Includes price reversal into the candle wick

If this option is deactivated, the touch is triggered only if the opening of the candle is in the correct zone (touch up = opening below the trigger price).

With this option activated, even if we start above the trigger price (in the case of a touch up), if during the candle the price dumps below the trigger price and then reverses above, then we trigger at the moment of the internal touch up.

Note : for now, whether it's ON or OFF it only triggers once per candle max (duration of the trigger for the rest of the candle). Example with this option OFF :

Example with this option ON :

Notes :

  • If you only want to display the vwap line, put factor 0 and your desired reset period, for example, if you want to display the daily vwap, put factor 0 with a reset period of 1 day.

  • If you want a VWAP with its standard deviations, you can put on the chart as many vwaps as you want and increase the factors to get the desired deviations.

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