VWAP
TradingDefinition
Volume-Weighted Average Price. The average price a stock has traded at, weighted by volume, over a specified period. Used as a benchmark for institutional execution quality (orders are scored against VWAP).
Day-traders use VWAP as a dynamic support/resistance line. Retail order-routing platforms increasingly support VWAP-targeted algo orders.
Day-traders use VWAP as a dynamic support/resistance line. Retail order-routing platforms increasingly support VWAP-targeted algo orders.