What is VWAP?
Unlike a simple average, VWAP incorporates volume. It provides a session-based reference for comparing the current price with the volume-weighted average traded price.
Volume
VWAP explained
VWAP, or Volume Weighted Average Price, is a price reference that weights price by traded volume. AlertoWatch uses a UTC-day VWAP calculation for supported alert rules.
How it works
AlertoWatch calculates cumulative close multiplied by volume, divided by cumulative volume, and resets the calculation at the UTC day boundary.
How traders often interpret it
Price above VWAP is often read as stronger positioning relative to the session reference, while price below VWAP can be read as weaker positioning. A cross only describes a change in location.
What it can be useful for
- intraday price-location context
- price-versus-VWAP crossings
- combining location with momentum
- rule-based session monitoring
Using VWAP in AlertoWatch
Turn the indicator relationship into a precise monitored condition. These are plain-English rule ideas, not recommendations or promises about market outcomes.
- Alert me when price crosses above VWAP on 15m.
- Alert me when price crosses below VWAP on 1h.
- Alert me when price is above VWAP and RSI is above 50.
Limitations
VWAP is session-dependent and is most useful as context rather than a standalone decision rule. Its interpretation changes with timeframe and market behavior.
FAQ
Is VWAP the same as a moving average?
No. VWAP is volume-weighted and follows session-reset logic.
When does AlertoWatch VWAP reset?
The documented engine calculation resets at the UTC day boundary.
Can price crossing VWAP be monitored?
Yes. Price and VWAP are supported in comparisons and crossover rules.
Why pair VWAP with volume?
Explicit volume conditions add participation context to the volume-weighted price reference.