VWAP (Volume Weighted Average Price)
Volume-weighted average price - shows where the real trading happens.
VWAP averages price weighted by volume at each level, usually reset daily. Institutions use it as an execution benchmark: buy below VWAP, sell above. Price under VWAP = sellers in control, above = buyers. Day traders use bounces off VWAP as a primary long setup.
In plain words
Price average weighted by how much was traded at each level. Tells you where deals actually happened. Price above VWAP = buyers winning today.
Example
Day trader BTC: price 70k, day VWAP 69.8k, long on bounce from 69.8k -> target 70.5k, stop 69.5k. Classic intraday setup.
Also known as: volume weighted average price