VideoCharts7 min read
What the RSI indicator actually tells you (and what it doesn't)
RSI measures how stretched a recent move is on a 0 to 100 scale. It is useful for timing, useless for prediction, and misread by most beginners.
Technical analysis
VWAPdin ka volume ke hisaab se average bhav
Volume-weighted average price: the average price a stock has traded at during the day, weighted by the volume at each price, used as an intraday benchmark.
VWAP, volume-weighted average price, is the day's average traded price with each trade weighted by its size. It resets every session and is drawn as a line on intraday charts. Institutions use it to judge execution: buying below VWAP is considered a good fill, above it a poor one. Intraday traders use it as a reference for who is in control. If SBI trades above VWAP most of the day, buyers on average are in profit and dips toward VWAP often find support; if it stays below, sellers have the upper hand and rallies to VWAP often fade. Suppose SBI opens at ₹800, rallies to ₹812 and pulls back to a VWAP of ₹806; a trader might watch for a hold there before buying with a stop below. VWAP is meaningful only intraday and only in liquid stocks, and it is one input, not a system.
Related terms
Lessons that use this term
VideoCharts7 min read
Candlestick patterns for beginners: the five worth learning first
A candle is four prices drawn as one shape. Learn to read the shape first, then five patterns that only mean something at the right place on the chart.
Charts7 min read
Support and resistance: how to find the levels that matter
Support and resistance are the prices where the market has changed its mind before. Here is how to find the ones worth marking and how to use them with a stop.