<h2>Volume Weighted Average Price (VWAP)</h2>
<p>The Volume Weighted Average Price (VWAP) is a technical indicator that measures the average price of an instrument, weighted by its volume. It provides a benchmark for traders to compare the current price of an asset with its average price over a specific period.</p>

<h2>How It Works</h2>
<p>VWAP is calculated by multiplying the price of each trade by its volume, summing these products, and then dividing by the total volume traded over the period. The formula is:</p>
<table>
<tbody>
<tr>
<td><strong>VWAP</strong></td>
<td>=</td>
<td>∑(Price<sub>i</sub> × Volume<sub>i</sub>) / ∑Volume<sub>i</sub></td>
</tr>
</tbody>
</table>
<p>The period can be any time frame, from a single day to several months. On the <strong>MetaTrader 5</strong> platform, VWAP is typically calculated on an intraday basis.</p>

<h2>Why It Matters for Traders</h2>
<ul>
<li><strong>Support and Resistance Levels</strong>: VWAP can act as a dynamic support or resistance level. If the price crosses above the VWAP, it may indicate a bullish trend, while a cross below could signal a bearish trend.</li>
<li><strong>Trend Identification</strong>: VWAP can help traders identify trends. If the price is consistently above the VWAP, it suggests an uptrend, while a consistently lower price may indicate a downtrend.</li>
<li><strong>Stop-Loss and Take-Profit Levels</strong>: Traders can use VWAP to set stop-loss and take-profit levels. For example, a stop-loss could be placed below the VWAP in an uptrend to protect profits.</li>
</ul>

<h2>Example</h2>
<p>Consider a trader using STB Provider's MetaTrader 5 platform to trade EUR/USD. The VWAP for the day is 1.1850, and the current price is 1.1875. The trader sees that the price has been consistently above the VWAP, indicating an uptrend. They decide to go long, placing a stop-loss below the VWAP at 1.1825.</p>

<h2>Key Takeaways</h2>
<ul>
<li>The Volume Weighted Average Price (VWAP) is a technical indicator that measures the average price of an instrument, weighted by its volume.</li>
<li>VWAP can act as a dynamic support or resistance level, help identify trends, and assist in setting stop-loss and take-profit levels.</li>
<li>Traders can use VWAP on the MetaTrader 5 platform to enhance their trading strategies.</li>
</ul>