Section 6 · 9:30 AM Open
VWAP at the Open
Where fair value lives — everything else is premium or discount
VWAP is where fair value lives — everything else is premium or discount.
VWAP — the Volume-Weighted Average Price — resets every morning at 9:30 and builds throughout the day. It represents the true average price paid weighted by volume. Opening above VWAP and holding it is bullish: institutions are buying above fair value showing conviction. A break below VWAP on a long position is an early warning exit signal. Reclaiming VWAP after a dip is a re-entry signal.
3 things to know
VWAP is the institutional benchmark — portfolio managers measure execution quality against VWAP, so their orders cluster around it.
VWAP resets to zero at 9:30:00 every morning — it is an intraday tool only, not useful across days.
Price above VWAP = trading at a premium to fair value; below VWAP = trading at a discount. Both have directional implications.
Dive Deeper
Key vocabulary — tap each card
Practice
VWAP as Intraday Guide
Price breaks below VWAP at 10 AM — reclaims at 10:30 as re-entry signal
Did you know?
Institutions use VWAP as an execution benchmark — their buy orders create natural support at VWAP during institutional accumulation phases.