VWAP is one of the most commonly referenced tools in short-term trading, and scalpers in particular lean on it heavily because it resets every session and reflects where the actual volume-weighted average trade has happened today.
A Quick Definition
VWAP (Volume Weighted Average Price) is the average price a stock has traded at during the session, weighted by how much volume traded at each price. For the full breakdown of what it is and how it's calculated, see our general VWAP trading strategy guide. This page focuses specifically on how scalpers apply it.
VWAP as a Bias Filter
A common heuristic: price trading above VWAP favors looking for call setups, price trading below VWAP favors looking for put setups. This is a bias filter, not a rule — plenty of valid setups occur on the "wrong" side of VWAP, and this heuristic is meant to narrow focus, not dictate every trade.
VWAP Reclaim / Loss
When price crosses back above VWAP after trading below it (a "reclaim"), or crosses back below after trading above it (a "loss"), some scalpers treat that cross itself as a trigger worth paying attention to — especially when it happens alongside rising volume or a broader trend shift.
VWAP as Dynamic Support/Resistance
Unlike a fixed horizontal support or resistance line, VWAP moves throughout the session. Price often reacts to it anyway — bouncing off it repeatedly during a trending session, for example — which is why many scalpers watch it as a moving reference level rather than only a static bias filter.
VWAP position alone doesn't confirm a trade. Scalpers typically combine it with volume, momentum, and a defined level — see how to find options scalping setups for how VWAP fits alongside the other signals.
Watch VWAP on a Live Chart
ScalpCharts plots VWAP in real time so you can see this in action.
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