VWAP stands for Volume Weighted Average Price. It calculates the average price of an asset over a specific period, weighted/calculated by volume. It acts as dynamic support/resistance.

There are several ways traders use VWAP depending on how it’s anchored and time-based.

  1. Standard VWAP (Intraday or Session VWAP)

  • Resets every new session/day.

  • Price above VWAP = buyers in control; below = sellers in control.

  • On the chart you'll see daily VWAP (yellow trendline). I use it for intraday trading. You can add it from indicators list on any charting website like TradingView, Velo, MMT and etc. just type VWAP in the search bar.

2. Anchored VWAP (AVWAP)

  • Custom start point VWAP anchored to a major event (swing high/low, news day, breakout, etc.).

  • Used to analyze how price reacts relative to volume since that key event. First touch of the AVWAP is almost always gives nice reactions, be it bounce or rejection depending on the trend. Idea is to enter the trade and put your stop loss above or below AVWAP, I usually use it in confluence with orderbooks.

  • Perfect for swing traders. I use it mainly on higher timeframes, below are examples with charts.

You can find AVWAP on TradingView on the left side panel by clicking at 👇

3. Rolling VWAP (RVWAP)

  • Continuous VWAP that doesn’t reset daily it accumulates from a chosen start date (e.g. monthly, quarterly, YTD). Remember, daily VWAP resets every day, this doesn't.

  • Good for medium and higher timeframe charts to find mean reversion entries. Look at chart below with 30D, 90D and 365D RVWAPs and see how perfect were reactions once price retested them, personally I longed almost every major retest when price dumped into them on ETH and shorted underside retest and rejection of 90D RVWAP with some other confluences like high OI and 30D RVWAP being below 90D.

Open indicators tabs on TradingView, find Rolling VWAP, add it and set days in the settings as you wish. You can add several of them with different time periods. Don't put numbers lower than 7 days, not worth it.

Recently I shared a simple long setup where BTC price was testing 365D Rolling VWAP + yearly developing VWAP, I longed during the bounce and took profits at monthly VWAP, worked out nicely.

4. Multi-Period VWAP

  • Extends VWAP across broader periods like weekly, monthly, quarterly, or yearly, automatically anchoring to the start of each period. Each VWAP resets at the period's start (e.g., Monday for weekly, first day of the month for Monthly) and uses aggregated data from that timeframe.

  • VWAP that's left behind after new month is called previous month VWAP (pmVWAP), it becomes static S/R level. But current monthly VWAP is dynamic and we call it developing month VWAP.

5. VWAP with Bands

  • Adds standard deviation bands around any VWAP type for volatility measurement. Timeframes match the base VWAP (e.g., intraday for standard). Those bands also act as dynamic support/resistance.

  • I use Multi-Period VWAPs with bands, only standard deviation ±1, you can use ±2 as well to identify overextended moves and potential reversal zones. Usually, I have them on 4 panels with 4 different periods: Weekly, Monthly, Quarterly and Yearly. Below on the chart you can see all 4 of them.

Traders often use standard deviations at ±1 to gauge volatility and find confluence between mean reversion and trend continuation setups.
Typically, we refer to the upper band as VAH (Value Area High) and the lower band as VAL (Value Area Low). On the chart below, you can see how perfectly price retested the previous week's VAH after breaking above it confirming it as support before the next leg up and kept holding and bouncing higher from developing VAH of weekly VWAP each time price retested it.

Once time period ends, it leaves static levels behind, you can use them as support/resistance levels. Below on the charts I have detailed description and guide on how to set things up, just copy my settings. The indicator for this VWAP I use is free and on TradingView called Koalafied VWAP.

At first it might look a bit messy and complicated, but if you start using bands/standard deviations on daily basis you'll get used to them.

I hope this short-form guide helps you make sense of VWAPs and add another powerful weapon to your trading toolkit.
#CryptoZeno #VWAPs