What Happens When Stock Crosses the VWAP?
What happens when your stock crosses the volume-weighted average price (VWAP)? This article explains if his is a bullish or a bearish signal for day traders.

Published October 30, 2021
Every participant in the financial markets, whether a day trader or long-term investor, looks for every tool to garner an advantage on a trade.
As you comb through the myriad of options at your disposal, it could be easy to get lost in translation, particularly when you are a novice.
So, for example, you may have come across the volume-weighted average price, or VWAP. While this is not a stock that you can buy shares of on an exchange, this provides buy and sell signals for day traders.
With that out of the way, you may be interested in learning how to invest in VWAP strategies.
What is a VWAP Cross?
So, what happens when an investment security crosses the VWAP trendline?
A VWAP cross functions as a trading indicator. It takes place when a stock's price crosses the VWAP.
This is a bullish indicator for institutional investors and day traders who will use these oversold conditions to buy immense volumes of shares. By doing this, it creates short-term profit because it lifts the share price up.
What Are the VWAP Cross Signal Indicators?
What would be the best way to determine if the VWAP cross signal occurred?
Here is a trick: When you want to determine if the stocks you are interested in are overbought or oversold, insert "by 1% AND More" to your moving average. You can then create buy and sell signals on your own.
Conclusion
This can only be a successful investment strategy by keeping track of your stocks can calculating your VWAP. So, all you need to do is select your time frame, calculate the typical price, multiple the typical price by the volume, and update a running total of values.
Related Articles

Identifying a Legit Cryptocurrency Trading Platform
Filip Dimkovski
December 23, 2024

Is Webull Legit and a Safe Trading Platform to Use?
Filip Dimkovski
May 25, 2021

In Which Countries Is eToro Available?
Andrew Moran
December 22, 2024

MetaTrader 4: Safety, Scams, Community, Trading CFDs, Commodities & Stocks
Filip Dimkovski
December 22, 2024

Saxo Bank Review: What to Consider Before Trading
Brokereviews
March 11, 2025
Related Posts
Andrew Moran
How to Use the VWAP for Day Trading
Andrew Moran
What Does VWAP Mean?
Andrew Moran
How to Calculate the VWAP
Andrew Moran
How Much Does a Pattern Day Trader Make?
Andrew Moran
Guide to Day Trading Stocks for Beginners
Andrew Moran