VWAP: the average price everyone actually paid today
VWAP is the volume weighted average price: every trade in the session counted at its size, not one point per candle. It is the average price the market actually paid, which is why it works as a reference for fair value. Above VWAP buyers are in control of the session; below it sellers are. SIMMENT anchors VWAP to the current UTC day open.
Why volume weighting matters
A simple moving average treats a candle that traded 4 BTC and one that traded 400 BTC as equal. VWAP does not: each candle enters the average at the weight of what changed hands. The result is the average cost of the session, the number a desk filling a large order measures itself against.
The formula is running sum of typical price times volume, divided by running sum of volume, where typical price is high plus low plus close over three. It restarts at each session open, which is what makes it a session tool rather than a trend line.
Reading price against VWAP
Price above VWAP means the average buyer this session is in profit, and pullbacks into VWAP are where that side tends to defend. Price below VWAP is the mirror: rallies into it often meet supply from people trying to get out at their average. A price that keeps crossing VWAP is a balanced, rangebound session, which usually shows up as a low ADX as well.
VWAP is strongest early and weakest late. In the first hours of a session few trades set the average and it moves fast; by the end of the day it is anchored by so much volume that it barely moves and says less about the next hour.
How the SIMMENT desk uses VWAP
The Technical Dashboard anchors VWAP to the current UTC day open and shows the level, whether price is ABOVE or BELOW, and the distance in percent. On the daily timeframe the tile is empty on purpose: a daily candle is its own session, so a day anchored VWAP there would be a number without meaning.
Quick answers
Where does SIMMENT anchor VWAP?
To the current UTC day open, and the tile says so. It is not a rolling average of the last N bars.
Is VWAP a buy or sell signal?
No. It is a reference for the session average. It tells you which side has been paying up, not what happens next.
This metric is a tile on the SIMMENT paper desk. Open a free account, get 10,000 virtual USDT and watch it on live Binance prices. Enter the desk → · iOS app
Educational content. Simulated trading only. Not financial advice. Updated 2026-09-06.