What is the VWAP?
The Volume Weighted Average Price is the average price weighted by traded volume. It is the favourite indicator of institutional traders for judging whether an asset is "expensive" or "cheap" relative to the day’s average.
Using it in binary options
Price above the VWAP: buyers dominate → bullish bias (CALL).
Price below the VWAP: sellers dominate → bearish bias (PUT).
Bounce off the VWAP: the VWAP acts as dynamic support/resistance. Bounces off it are continuation signals.
⚠️ Limitation
The VWAP only works with assets that have real volume data (forex, stocks). It does not apply to synthetic indices or OTC assets.