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VWAP and volume profile

Indicators that matter · Intermediate · 6 min read
You will learn to
  • What VWAP is and who uses it
  • Volume profile: POC and value area
  • Using them as locations

VWAP

The volume-weighted average price of the session — the average price everyone paid today, weighted by size. Institutions use it as a benchmark: buying below VWAP is "good" execution. Intraday, price above a rising VWAP is a bullish backdrop; the VWAP itself is a common pullback level. It resets each day, so it is meaningless on daily charts (NexusCore hides it there).

Volume profile

Instead of volume per candle, a profile shows volume per price over a period. The point of control (POC) is the price with the most volume; the value area holds about 70% of it. High-volume areas act like magnets and slow price down; low-volume gaps are crossed quickly.

Indicators → Volume: VWAP, Session Volume Profile (daily/weekly), and Visible Range profile.
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Check yourself

1. Why is VWAP hidden on the daily chart?
  1. It is too slow
  2. It resets every day, so it means nothing per daily candle ✓
  3. Binance does not allow it
It is an intraday measure.
2. The point of control is…
  1. The highest price of the day
  2. The price with the most traded volume ✓
  3. The open
Where most business was done.

Terms in this lesson

Point of control (POC)
The price with the most traded volume in a profile.
Value area
The price range holding ~70% of a profile's volume.
VWAP
Volume-weighted average price of the session.
Practise it on real charts. In the app, this lesson comes with real examples (reveal what happened next), a graded drill and the track test. Open the Academy in NexusCore — free →