intraday VWAP

VWAP, short for Volume Weighted Average Price . the VWAP is calculated by dividing the dollar volume of a stock by the share volume over a given period of time. it is the market's emerging estimate of value for the trading day.

i consider VWAP is the market estimated price of the given equity, for one advantage, it watchs the volume actions on price when different MA only has the price movement as target. it helps great to watch the intraday trend, if the trend is strong, 3 indications should be considered.

1, VWAP heading the same direction as the price
2, price is moving ahead of the VWAP.
3, VWAP is the supports/resistants of the price movement.

simply say, price above VWAP means current price attacts to buyer, if the interest of moving up is lacking, we will tend to see price is been gravitated back toward that VWAP, and vice verse.

combined VWAP with Pivot and Tick, will be more clear of the intraday trend.