#Tips 90 – VWAP vs. Volume Profile
Both use volume, but they answer different questions.
📍 VWAP → Shows the volume-weighted average price over its calculation period.
📊 Volume Profile → Shows where trading activity was concentrated across different price levels.
So think:
VWAP = Average price
Volume Profile = Volume by price
⚠️ Don't treat either one as an automatic BUY/SELL signal. Use them as context, then confirm with price action.
Remember:
VWAP tells you the average. Volume Profile shows you the distribution.