VWAP: Who is winning today?
What the volume-weighted average price tells intraday traders, what a VWAP reclaim means, and how to practise reading VWAP on 5-minute charts.
VWAP is today’s average price
VWAP (Volume Weighted Average Price) is the average price everyone paid today, weighted by volume. It resets every morning at 9:15, so it is an intraday tool.
What to look for
- Price above VWAP: most of today’s buyers are in profit.
- Price below VWAP: most of today’s buyers are losing.
- Big funds often use VWAP as their benchmark, so price reacts to it.
A "reclaim" is when price falls below VWAP, then climbs back above and holds.
Price is now ₹2,214, above VWAP at ₹2,196. What does that tell you about today?
- Sellers are clearly in control
- On average, today’s buyers are in profit
- Nothing. VWAP only works on daily charts.
Show the answer
On average, today’s buyers are in profit. Above VWAP, the average buyer today is in profit. They are less likely to panic-sell, which tends to support price.
The VWAP reclaim
Price sold off at the open, then reclaimed VWAP and held above it, even on the late-morning dip. When VWAP turns from a ceiling into a floor, intraday traders often look for a move up.
The retest matters. A reclaim that holds on the next dip is much stronger than one that doesn’t.
Practise VWAP, free
Reading about it is step one. In MarketSeekho you see a real NSE chart with the future hidden, call Bull or Bhalu, say why, and get graded on your reasoning, not luck.
Common questions
What is VWAP?
VWAP (Volume Weighted Average Price) is the average price everyone paid today, weighted by volume. It resets every morning at 9:15, so it is an intraday tool.
What should I look for with VWAP?
Price above VWAP: most of today’s buyers are in profit. Price below VWAP: most of today’s buyers are losing. Big funds often use VWAP as their benchmark, so price reacts to it.
How can I practise reading VWAP for free?
MarketSeekho has a free four-page chapter on VWAP (learn, answer a question, spot it on a chart, then make a call) and an unlimited VWAP practice game graded on your reasoning. No sign-up or money needed.