Volume-weighted ideas still work with tick volume as the weight
Posted: Sat Oct 31, 2026 7:02 am
VWAP is popular in equities and futures, where real volume exists. In forex, tick volume can stand in as the weight, and the resulting anchored line still acts as a useful reference.
Intraday, a VWAP starting at the session open shows the average price traded, weighted by activity. Price that stays far from it often gets pulled back, and crossings give a quick sense of who is in control.
The caveat is that tick volume as a weight is imperfect. Feeds differ, and the line can look a bit different between brokers. But for relative purposes, such as measuring distance from the anchored average, it behaves consistently on a single feed.
Some scalpers use deviation bands around it, treating extensions as fading opportunities in range conditions and pullbacks to the line as continuation entries in trends.
Anchoring matters. A VWAP anchored at midnight server time tells a different story than one anchored at the London open, and picking the wrong anchor makes the tool useless.
Is a volume-weighted line used for forex, and which anchor point has worked best?
Intraday, a VWAP starting at the session open shows the average price traded, weighted by activity. Price that stays far from it often gets pulled back, and crossings give a quick sense of who is in control.
The caveat is that tick volume as a weight is imperfect. Feeds differ, and the line can look a bit different between brokers. But for relative purposes, such as measuring distance from the anchored average, it behaves consistently on a single feed.
Some scalpers use deviation bands around it, treating extensions as fading opportunities in range conditions and pullbacks to the line as continuation entries in trends.
Anchoring matters. A VWAP anchored at midnight server time tells a different story than one anchored at the London open, and picking the wrong anchor makes the tool useless.
Is a volume-weighted line used for forex, and which anchor point has worked best?