Understanding The VWAP
Why It's Important and How To Use It
What is VWAP?
VWAP stands for Volume Weighted Average Price. Put simply, it is the average price a security has traded at throughout the day, based on both volume and price.
VWAP is a smart money indicator, heavily relied upon by algorithmic systems, hedge funds, and institutional traders. It essentially gives you an idea of what smart money is doing intr…