What it does
TWAP is the simple average of price (often the average of open, high, low and close per bar) accumulated evenly over time since a session or anchor start, without any volume weighting. It represents the average price a strategy would achieve by executing uniformly through the period, and is a common institutional execution benchmark alongside VWAP. On a chart it forms a smooth line tracking the session's time-averaged price.
How to add it
Click Indicators (ƒx) in the header.
Search “Time Weighted Average Price” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Price trading persistently above the session TWAP indicates buyers are in control of the session; persistently below indicates sellers.
- Mean-reversion traders fade extensions far from TWAP back toward the line in balanced markets.
- Compare TWAP with VWAP: VWAP above TWAP means more volume traded at higher prices, a subtle sign of buying interest concentrating late or at highs.
- Execution-minded traders use TWAP as a fill-quality benchmark: consistently buying below TWAP means execution is beating a uniform-time schedule.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Anchor Period | select | 1 day | 30 minutes / 45 minutes / 1 hour / 2 hours / 3 hours / 4 hours / 1 day / 1 week / 1 month / 3 months / 6 months / 12 months |
| Source | select | ohlc4 | Close / Open / High / Low / HL2 / HLC3 / OHLC4 |
| Offset | number | 0 | -500–500 |
| Timeframe | select | Chart | Chart / 1 minute / 5 minutes / 15 minutes / 30 minutes / 1 hour / 1 day / 1 week / 1 month |
| Wait for timeframe closes | boolean | On | — |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| TWAP | line | #2196F3 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision, price-scale labels and status-line values are configurable at the bottom of the Style tab.
Tips
- Right-click the indicator's line for quick actions — settings, visibility and removal without hunting through menus.
- Use Add to favorites in the legend menu; starred studies surface at the top of the picker.
- The legend eye toggles it off without losing your settings — handy for before/after comparisons.
- A custom timeframe input lets it compute on a higher interval than the chart.
Watch out for
- Because it ignores volume, TWAP can sit far from the prices where real business was done, making it a weaker fair-value proxy than VWAP.
- Like any session average it flattens as the day ages and responds slowly to late-session moves.