Many traders see VWAP as an indicator and want to trade crossings with other indicators. This is wrong. VWAP (Volume Weighed Average Price) can be looked at as a fair price. A good trader doesn’t trade at a fair price. He wants either buy cheap or sell expensive. And just this VWAP shows. It divides a day in a long or short zone. So VWAP is not a signal but a filter. If ever you want to be a successful trader you have to understand the principles behind VWAP as many institutionals use VWAP as an orientation. It also reveals institutional activity and helps you against overtrading.