Does VWAP reset every day?

Yes. Standard intraday VWAP starts fresh at the 9:15 am open and builds through the session to 3:30 pm. Anchored VWAP, which starts from a date you choose, is a different tool.

Why does my VWAP differ from another platform?

Platforms may use the typical price, the close, or every individual trade, and different candle intervals. Small differences are normal.

Is price above VWAP a buy signal?

No. It only means recent trades are above the day's volume-weighted average. VWAP describes what has happened and does not predict the next move.

Can I use VWAP on a daily chart?

A standard VWAP resets each session, so it is meant for intraday charts. On daily charts people use moving averages or anchored VWAP instead.

What is VWAP?

Updated 11 October 2026

VWAP calculator and indicator →

VWAP stands for volume weighted average price. It is the average price a stock has traded at during the day, where each price is weighted by how many shares changed hands at it. A price where 50,000 shares traded counts far more than a price where only 500 traded.

On NSE and BSE, VWAP is usually calculated from the 9:15 am open and resets every morning. By 3:30 pm it tells you, roughly, the average price that everyone who traded that day paid or received.

The VWAP formula

VWAP = cumulative (typical price × volume) ÷ cumulative volume

The typical price of each candle is (high + low + close) ÷ 3. Some platforms use only the close or the actual traded price of every tick, so the number you see can differ slightly between charting tools. The idea stays the same.

For each candle, work out the typical price.
Multiply it by that candle's volume.
Keep a running total of these products and a running total of volume.
Divide the first total by the second. That is VWAP up to that candle.

Worked example

Take Stock ABC on a 5-minute chart. Here are the first four candles after the open (made-up prices).

Candle	High	Low	Close	Typical price	Volume	Price × volume
9:15	₹102	₹98	₹100	₹100	2,000	₹2,00,000
9:20	₹104	₹100	₹102	₹102	3,000	₹3,06,000
9:25	₹103	₹99	₹101	₹101	1,000	₹1,01,000
9:30	₹106	₹102	₹104	₹104	4,000	₹4,16,000

Running VWAP after each candle:

After 9:15: ₹2,00,000 ÷ 2,000 = ₹100.00
After 9:20: ₹5,06,000 ÷ 5,000 = ₹101.20
After 9:25: ₹6,07,000 ÷ 6,000 = ₹101.17
After 9:30: ₹10,23,000 ÷ 10,000 = ₹102.30

Notice how the 9:30 candle, with the most volume, pulled VWAP up the most. A simple average of the four typical prices would be ₹101.75. VWAP is higher because more shares traded at the higher prices. You can check numbers like these with the VWAP calculator.

How traders read VWAP

VWAP is drawn as a single line on an intraday chart. People use it in a few common ways:

As a fair-value reference. Price above VWAP means the latest trades are happening above the day's average; below means under it. That is a description, not a forecast.
As a benchmark for execution. Institutions often judge whether they bought or sold well by comparing their average fill to VWAP. Buying below VWAP or selling above it is seen as a good fill.
As a zone people watch. Because many traders look at the same line, price sometimes pauses or reacts near it. Just as often it slices straight through.

Some traders also plot VWAP bands, lines a set number of standard deviations above and below VWAP, to see how stretched price is from the average.

VWAP vs a moving average

A moving average averages closing prices over a fixed number of candles and ignores volume. VWAP uses every candle since the open and weights them by volume. That is why VWAP moves quickly early in the day and becomes slow and steady by the afternoon: each new candle is a smaller share of the total volume.

Limits you should know

It lags. VWAP is built entirely from trades that already happened. It cannot tell you what the next candle will do.
It is an intraday tool. It resets each day, so on daily or weekly charts a standard VWAP has little meaning. Anchored VWAP, started from a candle you choose, is the version for longer charts: see VWAP vs anchored VWAP.
Late in the day it barely moves. After a few hours, even a big move shifts VWAP only a little.
Data differs. Different typical-price methods and candle sizes give slightly different values.
Gaps and news can push price far from VWAP and keep it there all day.

The risk side

VWAP is popular with intraday traders, and intraday trading is hard. SEBI's studies (SEBI study, 2023 and 2025) found that about 9 in 10 individual F&O traders lost money in FY22 and FY25, and most intraday cash traders also lose money once charges are counted. No single line changes those odds. If you trade, decide your stop-loss and position size before entry, and include brokerage, STT and other charges in your maths.

Quick recap

VWAP = total (typical price × volume) ÷ total volume, reset every day.
It shows the day's volume-weighted average price, not a future price.
It reacts fast in the morning and slowly in the afternoon.
Use it as a reference point alongside risk control, never as a signal on its own.

Questions people ask

Does VWAP reset every day?: Yes. Standard intraday VWAP starts fresh at the 9:15 am open and builds through the session to 3:30 pm. Anchored VWAP, which starts from a date you choose, is a different tool.
Why does my VWAP differ from another platform?: Platforms may use the typical price, the close, or every individual trade, and different candle intervals. Small differences are normal.
Is price above VWAP a buy signal?: No. It only means recent trades are above the day's volume-weighted average. VWAP describes what has happened and does not predict the next move.
Can I use VWAP on a daily chart?: A standard VWAP resets each session, so it is meant for intraday charts. On daily charts people use moving averages or anchored VWAP instead.