VWAP Indicator - Volume Weighted Average Price | Share India

Frequently Asked Questions About VWAP Indicator

LTP stands for the Last Traded Price. This is simply the last recorded price at which the security traded. The LTP refers to the most recent transaction price, and therefore reflects the current market value.

The VWAP calculation for Nifty is the same as for individual stocks. It is the ratio of the value traded to total volume traded for the 50 stocks comprising the Nifty index over a specified time period intraday.

Traders often use VWAP Nifty as a trend confirmation tool. If the price is above VWAP, the intraday trend is considered up. If the price is below VWAP, the trend is down. Traders may buy below VWAP and sell above VWAP to capture mean reversion plays. Breakouts above or below VWAP can signal continuation.

VWAP Nifty indicator lags price action so signals are not predictive. It also does not account for market fundamentals. Nifty VWAP should be used along with other indicators and analysis for trade signals. It provides only one perspective.
Hidden Footer Popup