What is VWAP in Crypto Trading?

VWAP stands for Volume-Weighted Average Price. It calculates the average price of an asset weighted by the volume traded at each price level, giving a fairer representation of price than a simple average.

Formula: VWAP = Σ(Price × Volume) / Σ(Volume)

In traditional finance, VWAP is used as a benchmark for institutional order execution. In crypto, NavScope extends it across multiple exchanges — creating a Cross-Exchange VWAP that removes exchange-specific anomalies and wash trading.

NavScope calculates VWAP across 4 time windows: 1 hour, 4 hours, 24 hours, and 7 days. Each window uses candle data from all active exchanges for a token. If an exchange's price deviates more than 50% from the VWAP, it is flagged as an anomaly and excluded from the calculation.

This makes NavScope's VWAP particularly useful for detecting price manipulation — a token trading far above VWAP on one exchange with low volume is a red flag.