StocksResult
📝 Volume Weighted Average Price (VWAP)
📊 Volume Weighted Average Price (VWAP)
Let’s make this super simple! 🚀
Have you ever wondered ❓
At what price did most traders actually buy or sell a stock today?
Not the high price, not the low price... but the real average price where the maximum action (volume) happened?
👉 That’s exactly what VWAP (Volume Weighted Average Price) tells us!
🔍 What is VWAP?
VWAP means:
Volume + Price = True Average Price
It’s not just the average of prices...
It also cares about how many shares were traded at those prices! 🎯
Think like this:
If 10 bananas 🍌 are sold at ₹10 and 100 bananas 🍌 at ₹12 — VWAP will stay close to ₹12 because more bananas were sold there!
Stocks work the same way! ✅
🎯 Why VWAP is Awesome for Traders?
VWAP shows:
✔️ The actual price where most buyers and sellers traded today.
✔️ Whether the stock is strong (bullish) or weak (bearish).
✨ Simple Rule:
👉 Price above VWAP = Buyers strong = Uptrend likely!
👉 Price below VWAP = Sellers strong = Downtrend likely!
It’s like a secret line telling you which team (buyers or sellers) is winning! 🏆
💡 VWAP in Real Life Example:
Imagine you went to a fruit market 🍎🍊🍇.
3 people bought apples for ₹90 each.
20 people bought apples for ₹100 each.
2 people bought apples for ₹105 each.
Which price is more important? ₹100!
Because most apples were sold at ₹100 — not at ₹90 or ₹105.
That ₹100 is like VWAP — the “real market price” of apples today! 🍏
The stock market is just like this fruit market! 😉
📌 How do Traders Use VWAP?
🎯 Intraday Traders Love VWAP!
✔️ If price jumps above VWAP, they may buy — thinking buyers are strong 💪.
✔️ If price falls below VWAP, they may sell — thinking sellers are strong 👎.
🔁 Some traders wait patiently for the price to come near VWAP — and then trade to catch the next big move! 🎢
🔥 When VWAP Becomes Your Friend:
✅ Finding the right entry and exit points.
✅ Avoiding buying too high or selling too low.
✅ Understanding where “big players” (like big investors) might be trading!
It's like knowing the hidden battlefield between buyers and sellers! ⚔️
🤔 Important Things to Remember:
🚫 VWAP is best for intraday trading only — not for long-term decisions.
🚫 VWAP works well with other tools like RSI, MACD, and Supertrend — not alone.
Example:
Imagine using VWAP + RSI — like using Google Maps with a compass 🧭 — double confirmation = safer journey! 🚗💨
💬 In Short:
VWAP = Price + Volume Magic! ✨
✔️ Above VWAP? Market strong!
✔️ Below VWAP? Market weak!
But remember — VWAP is your guide, not a guarantee! 😉 Always plan your moves with care.
🛡️ Disclaimer:
⚠️ Disclaimer: The content provided on this website is for educational and informational purposes only. It should not be considered as investment advice, stock tips, or financial recommendations. Always do your own research or consult a SEBI-registered investment advisor before making any trading or investment decisions. 📢