What Is VWAP? Volume-Weighted Average Price Explained

VWAP (volume-weighted average price) is the average price a stock has traded at during the day, giving more weight to prices where more shares changed hands. It starts fresh each trading day.

How it's calculated

For each period: multiply the price by the volume. Add those up through the day, then divide by the total volume so far.

VWAP = cumulative (price × volume) ÷ cumulative volume

Because it's weighted by volume, a price where 1 million shares traded counts far more than one where only 1,000 did.

Why traders watch it

• A benchmark: large investors judge whether they bought or sold well against VWAP.
• Above VWAP: on average, today's buyers are in profit. Many momentum traders prefer stocks holding above it.
• Below VWAP: on average, today's buyers are at a loss, and VWAP can act as resistance on the way back up.

VWAP is a reference line, not a signal on its own. Fast-moving stocks can cross it many times in a day.

How Nexus Screener shows it

• An Above VWAP or Below VWAP tag on each stock, updated with the price.
• A VWAP line on intraday candlestick charts (Pro adds VWAP bands).
• An "Above VWAP" filter for scans.