VWAP (Volume Weighted Average Price)
VWAP is used to measure the average price of a security, weighted by its trading volume. It's commonly used by institutional traders to assess the true average price of a stock throughout the trading day.
How It Works:
VWAP is calculated by dividing the total value of trades by the total volume for the given period.
Traders use it to assess whether the current price is over or under the average price.
Use Case:
VWAP is used for intraday trading and often serves as a benchmark to decide whether a trade should be entered or exited.
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