VWAP: The Indicator Every Futures Trader Should Understand

VWAP stands for Volume Weighted Average Price.

It calculates the average traded price weighted by volume, making it a useful reference for intraday trading.

When NQ is trading above VWAP, some traders look for bullish opportunities. When it's below VWAP, they may look for bearish setups.

But price above VWAP doesn't automatically mean buy, and price below it doesn't automatically mean sell.

I use VWAP as context and combine it with market structure, key levels, and order flow.

An indicator is most useful when you understand what it actually measures.