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VOLUME WEIGHTED AVERAGE PRICE

VWAP

The Volume Weighted Average Price calculates the price average weighted by volume.

The Volume Weighted Average Price is a moving average of price weighted by volume.  VWAP is a powerful tool for an intraday trader to identify the strength or weakness of an instrument.  VWAP can add more value than standard moving averages because the VWAP reacts to price movements based on an instrument’s volume during a given period.

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