Volume

Volume-Weighted Average Price

VWAP

Calculates the cumulative average price weighted by volume, reflecting the true average price at which trading occurred. Price above VWAP suggests bullish sentiment; below suggests bearish.

Tips

Institutional traders often benchmark executions against VWAP; price reverting to VWAP after a move can offer entries

VWAP is most useful intraday and resets each session; on longer timeframes its relevance diminishes