VWAP is calculated by weighting each price by its trading volume: prices where more volume traded count for more, so VWAP reflects where the bulk of a session's trading actually happened, not just the simple average of the high and low. It typically resets at the start of each trading session (each day, for a 24/7 market like crypto) and accumulates through the day.
It's used two opposite ways: as a reversion anchor (price stretched far below VWAP on a range day is "cheap" relative to the session's real average, a dip to fade) or as a trend/momentum filter (price holding above a rising VWAP confirms genuine buying pressure, not just a quiet drift).
zengtrade runs both styles as distinct intraday strategies, a VWAP-reversion fade and a VWAP-momentum trend-continuation play, deliberately built as opposites of each other, not variations on the same idea.
Educational content, not investment advice. zengtrade is paper-first and non-custodial.