what is the volume weighted average price vwap 
the volume weighted average price vwap is a technical analysis indicator used on intraday charts that resets at the start of every new trading session it s the average price a security has traded at throughout the day based on both volume and price vwap is important because it provides traders with insight into both the price trend and value of a security investopedia jiaqi zhouunderstanding the volume weighted average price vwap vwap is calculated by totaling the dollars traded for every transaction price multiplied by the volume and then dividing by the total shares traded the formula for vwap is vwap cumulative typical price volumecumulative volumewhere typical price high price low price closing price 3cumulative total trades since the trading session opened begin aligned textbf vwap mathbf frac textbf cumulative typical price mathbf times textbf volume textbf cumulative volume textbf where text typical price text high price text low price text closing price 3 text cumulative text total trades since the trading session opened end aligned vwap cumulative volumecumulative typical price volume where typical price high price low price closing price 3cumulative total trades since the trading session opened by adding the vwap indicator to a streaming chart the calculation will be made automatically however to calculate the vwap yourself follow the steps below assume a five minute chart the calculation is the same regardless of what intraday time frame is used to make step 3 easier in a spreadsheet create columns for cumulative pv and cumulative volume and apply the formula to these figures 