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Understand VWAP indicator in Hindi — the most important indicator for intraday trading. Calculation, strategy, and real examples.
Published by The Retail Trader · AUG 20, 2026 · Features
Understand VWAP indicator in Hindi — the most important indicator for intraday trading. Calculation, strategy, and real examples.
The full form of VWAP is Volume Weighted Average Price. This indicator tells what the average price was during the day when the volume is also considered.
In simple words: VWAP = average of price × volume. Therefore this is only for intraday (from the beginning to the end of the day).
Institutional traders (FII, DII, mutual funds) use VWAP to decide the execution price of their large orders. If the institutional buyer buys around the VWAP, then the retail trader should also consider the VWAP important.
Key uses:
• Intraday trend direction
• Support/resistance (dynamic)
• Entry/exit levels
• Institutional activity detection
On TRT: theretailtrader.org/charting → indicators → VWAP. Available in Pro plan (with intraday data).
VWAP = Σ(Typical Price × Volume) / Σ(Volume)
Where:
• Typical Price = (High + Low + Close) / 3
• Volume = that candle's volume
Display:
• A line is drawn on the chart
• The day starts at 9:15 AM
• Have to stay till 3:30 PM
• Next day it gets reset (fresh VWAP)
Some platforms also provide bands with VWAP (±1 std dev, ±2 std dev). It works like Bollinger Bands but around VWAP.
Buy setup:
• Price is above VWAP = bullish intraday trend
• Price pullbacks towards VWAP
• touches the vwap line
• Bounce back up (bullish candle)
• Entry: After Bounce candle close
• Stop loss: Slightly below VWAP
• Target: Day's high or previous resistance
Sell setup: Reverse — price below VWAP, pullback to VWAP, rejection.
Buy setup:
• Price has consolidated below the VWAP (morning)
• Suddenly price breaks above VWAP + volume
• Entry: Breakout after candle close
• Stop loss: Slightly below VWAP
• Target: 1:2 risk-reward minimum
Strategy 3: VWAP + Moving Average Combo:
• VWAP = intraday anchor
• 9 EMA = short-term momentum
• Buy: Price above VWAP + 9 EMA above VWAP = strong bullish
• Sell: Price below VWAP + 9 EMA below VWAP = strong bearish
• Avoid: Price crossing VWAP repeatedly (choppy, no clear trend)
Morning (9:15 - 10:30 AM):
• VWAP is still fresh, more movement
• First 15 min: avoid (high volatility, VWAP unstable)
• 9:30 - 10:30: First meaningful VWAP signals
Midday (11:00 AM - 1:30 PM):
• VWAP has become stable
• Best time for VWAP bounce trades
• Lower volatility = more reliable signals
Afternoon (2:00 - 3:30 PM):
• VWAP is the full day average
• If price is closer to VWAP then mean reversion is possible.
• VWAP important for institutional execution in the closing auction (3:00-3:30)
Keep these points in mind:
• Only for intraday — VWAP is reset from the beginning of the day. Meaningless on daily/weekly charts.
Keep these points in mind:
• Lagging indicator — VWAP is an average of past data. Does not predict the future.
Keep these points in mind:
• Choppy is useless during the day — when the price crosses repeatedly around the VWAP, the trend is not clear.
Keep these points in mind:
• Opening volatility — first 15 min VWAP is unstable. Wait till 9:30.
Keep these points in mind:
• Not a standalone indicator — works best in the VWAP + volume + price action combo.
Smart Money Detection:
• If price is above VWAP and volume high = institutions buying
• If price is below VWAP and volume high = institutions selling
• If price is around VWAP and volume low = sideways, institutions inactive
When the price touches the VWAP and goes back, it means institutions have bought/sold at the US level. This is a strong signal.
Keep these points in mind:
• VWAP needs support/resistance all the time — VWAP is dynamic, moving throughout the day. Don't treat it like Static S/R.
Keep these points in mind:
• Taking trade in first 15 min — VWAP is unstable in opening. Enter after 9:30.
Keep these points in mind:
• Using VWAP on daily chart – VWAP is intraday only. Use 20 SMA on daily chart.
Keep these points in mind:
• Taking a VWAP trade without volume — VWAP + volume = meaningful. VWAP breakout without volume = fake.
Keep these points in mind:
• Not setting target – entry from VWAP, but what is the target? Set Day's high/low or 1:2 R/R.
Best on 1 min, 5 min, and 15 min charts. 5 min + VWAP = classic combo for intraday.
Technically yes but not useful. The VWAP resets from the beginning of the day. 20/50/200 SMA is better for swing trading.
Moving Average = average of price only. VWAP = average of price + volume. VWAP is more accurate because it weighs volume.
Hey! VWAP is available in TRT Pro plan (₹2,499/mo). Most useful with intraday data. Try theretailtrader.org/charting.
Some traders use 2-3 VWAP (daily, weekly, monthly). For beginners a daily VWAP is enough.
Try VWAP on TRT: theretailtrader.org/charting Pro (VWAP + intraday + 100+ indicators): ₹2,499/mo — theretailtrader.org/pricing Telegram: @theretailtrader_in
Educational only. NOT investment advice.
This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.