VWAP Bands Calculator
Institutions don't buy at random prices. They buy at VWAP. Calculate the bands to see where the "Smart Money" is waiting.
| Level | Price | Description |
|---|---|---|
| Upper Band 2 | --- | Extreme Overbought (Sell Zone) |
| Upper Band 1 | --- | Resistance / Profit Taking |
| VWAP (Approx) | --- | Fair Value (Institutional Buy Zone) |
| Lower Band 1 | --- | Support / Dip Buying |
| Lower Band 2 | --- | Extreme Oversold (Buy Zone) |
Trading the "Whale's Average Price"
VWAP (Volume Weighted Average Price) is the benchmark used by institutional traders. If a mutual fund wants to buy 1 million shares, they try to buy as close to VWAP as possible to avoid moving the market.
This calculator estimates the VWAP bands based on High, Low, and Close data (similar to Pivot Points). These bands act as dynamic support and resistance levels.
How to Trade the Bands
- At VWAP: This is "Fair Value." The market is in equilibrium. It's often a good place to enter a trend trade.
- Upper Band 2: The price is statistically overextended. Reversion to the mean (drop back to VWAP) is likely.
- Lower Band 2: The price is cheap. Value investors often step in here.
Common Questions
Is this the same as the indicator?
Not exactly. The chart indicator calculates VWAP tick-by-tick using volume. This calculator uses a formula based on daily price action to estimate the levels for the next session.
Does it work for Crypto?
Yes, VWAP works for any asset with volume. It is especially respected in Bitcoin and Ethereum intraday trading.