concept

Session VWAP

Volume-weighted average price from RTH open. Where price sits relative to it at 10:30 and 12:00 ET is the strongest pre-Silver-Bullet directional filter we've measured.

updated 2026-04-23
vwapregimevolume

What VWAP is

Volume-Weighted Average Price. Running average of price weighted by the volume that traded at each price, anchored to a starting time. Math:

VWAP = Σ (price × volume) / Σ volume

It answers the question: what’s the average price everyone in this session paid? That makes it the single most-watched mean-reversion reference on the chart — institutions benchmark executions against it, algorithms reference it, and it often acts as the day’s “gravity center.”

Our session VWAP anchors to the RTH open (09:30 ET).

Why its position at specific times matters

We audited close-direction rates vs where price sat relative to VWAP at fixed times of day. The gradient is the cleanest directional filter we’ve measured:

SnapshotThresholdABOVE → BULL closeBELOW → BEAR close
10:30±10pt74.9%69.8%
12:00±10pt80.1%79.1%
14:00±20pt89.6%86.5%
10:30 & 12:00 same side84.1%82.9%

Baseline is BULL 53.5% / BEAR 46.5%. So standing above VWAP at 12:00 ET carries a +27pt close-direction edge — bigger than anything else on the board until Silver Bullet aligns with W1.

Why the timing matters so much

VWAP early in the session is noisy — it’s a handful of trades averaged together. By 10:30 ET, an hour of RTH volume has weighted it. By 12:00 two and a half hours are in. The snapshots we use aren’t arbitrary; they’re the points at which VWAP becomes a statistically stable reference.

14:00 rates are even higher (89/86%) but too late to be actionable — the move is mostly already in.

The mean-reversion counterintuitive finding

From the LON MOMENTUM BULL research arc we found that during the London session, entries at or below session VWAP for long sweeps were profitable while entries 15+ points past VWAP in the trade direction lost money — even though those later entries were “going with the momentum.”

The rule there wasn’t “London breaks Asia high, chase it.” It was “London reclaims Asia high cheaply, ride it.” VWAP acts as a cheapness gauge, and paying up past it caps your expected value.

Where you’ll see VWAP on this site

Anchors and variants

VWAP can be anchored to different start times; each gives you a different reference:

When a model says just “VWAP” without qualification on this site, assume session VWAP from the 09:30 RTH open.