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.

VWAP Volume Weighted Average Price

• 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.