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Risk warning CFDs, forex and crypto are high risk and most retail CFD accounts lose money. Nothing here is investment advice and no result is guaranteed. We may earn commissions from partners.High-risk products. Not investment advice. Nothing is guaranteed.

Checking market sessions…

Volume and VWAP

Volume confirms price moves; VWAP is the volume-weighted average price that institutions use to grade their fills.

What volume tells you

  • Price up on rising volume: real buying, a healthy trend.
  • Price up on falling volume: buying is fading, be careful.
  • A breakout on heavy volume is more reliable than one on light volume.
  • A volume spike after a long decline can be a selling climax (see the Wyckoff lesson).
Watch outForex has no central volume; the volume on FX charts is your data provider's tick volume (how often price changed). It is useful for relative comparison but it is not real contract volume.

What VWAP is

VWAP (Volume Weighted Average Price) = sum of (typical price × volume) / sum of volume, counted from the session open and reset every session. Institutions use it to judge whether they bought cheap or expensive relative to the day.

On TradingViewVolume, VWAP (Anchor: Session)
Best forStocks, indices, crypto, intraday trading
VariantAnchored VWAP: anchored to a key high, low or news event

Trading with VWAP

  1. Price holds above VWAP all session: buyers in control; prefer buying pullbacks to VWAP.
  2. Price below VWAP: prefer selling bounces into VWAP.
  3. Price crossing VWAP back and forth: a sideways day, trade less.
  4. Put the stop on the other side of VWAP, an ATR-based distance away.
TipAn Anchored VWAP from the low of a big rally is often a support level many funds watch.

Try it on a chart

Educational content only, not investment advice. Practise on a demo account before using real money.