Top › Technical indicators › VWAP (Volume Weighted Average Price)

Technical indicator #4

VWAP (Volume Weighted Average Price)

Volume Weighted Average Price

A line that averages the prices traded that day, weighted by trading volume. A guide to "today's average buy price."

Importance★★★

TypeTrend

Common settingsResets and recalculates from the start of each day (market open)

MT5（FUNDED7）Not built in (view it on TradingView, etc.)

1A 30-second chat

JUDITHHow is it different from a moving average?

JADEA moving average is just the average of price. VWAP gives more weight to "prices where lots of trading happened," so it's close to where big investors bought.

JUDITHWhen do I use it?

JADEMainly day trading, where you close within the same day. It's widely used on stock indexes like Nasdaq futures

2Here's how it looks

A guide to "the average buy price of the day," calculated from the start of the day

3Just check this

Price above or below

Above VWAP, buyers are in control; below it, sellers are

Pullback to VWAP

Price that has moved away often comes back toward VWAP

Resets every day

It's calculated from zero each day, so it's a line suited to day trading

4Reading basics

▲ Sign it may risePrice stays above VWAP → buyers lead that day. VWAP tends to act as support

▼ Sign it may fallPrice stays below VWAP → sellers lead that day. VWAP tends to act as a ceiling

Technical indicators are calculated from past price moves, so they react a little late and can be wrong (false signals). The basic rule is not to decide from just one.

5Prop firm watch-outs

VWAP resets every day, so it is easy to think about in the same unit as a prop firm's "daily loss line." If you jump in far away from VWAP, the pullback toward it can easily hit your stop loss, so go easy on new trades when price is stretched too far.

Daily loss line:5% of the previous day's closing balance. Unrealized losses count too (Official FAQ）

6How to show it in MT5

It is not built into MT5.If you want to see VWAP, the easiest way is to show it in a chart app such as TradingView.

🔧 Numbers to enter (common settings)

✓

Using it in MT5

Add a VWAP indicator from the MQL5 Market

✓

Caution

For add-ons, check carefully who provides them

It's fine to trade FUNDED7 on MT5 and check VWAP in a separate chart app. For the steps, see the official help from MT5's developer (iPhone · Android · PC). Menu names may appear in English depending on your language settings.

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Common settings are general guides. How to show them depends on the chart software.