VWAP in Indian Markets: Practical Guide for Nifty Traders
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1. What is VWAP?
VWAP (Volume Weighted Average Price) reflects the average price of a stock or index, weighted by trade volume.
2. VWAP Formula
VWAP = (∑ Price × Volume) / (∑ Volume)
3. Why VWAP Matters for Nifty & Bank Nifty
- 🔹 Above VWAP → Bullish sentiment
- 🔹 Below VWAP → Bearish sentiment
- 🔹 Acts as dynamic support/resistance intraday
4. Trading Strategies
Combine VWAP with CPR and EMA20 for stronger intraday confidence.
Pro Tip: Look for VWAP bounce setups near key zones for optimal entries.