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Investment
Volume Weighted Average Price
The average price a stock has traded at during the day, weighted by volume — used by institutions as a benchmark.
VWAP is one of the most used intraday indicators by professional traders. It resets every day. Algorithms and dark pools use VWAP heavily. It is especially important for large orders that need to be executed without moving the market.
It's the true average price paid by everyone trading that day, not just the closing price.
Real world: Big funds try to buy below the VWAP and sell above it. If you buy below VWAP you are getting a better-than-average price for the day.
💡 VWAP shows you whether you are buying or selling at a good price compared to everyone else that day.