Category – Volume Weighted Average Price (VWAP)
Volume Weighted Average Price (VWAP) is a trading indicator that calculates the average price of an asset based on its volume and price over a specific period. In trading, VWAP is used to determine the efficiency of trade executions by comparing the average price to the asset’s volume. Traders use VWAP to assess the direction of price movements, identify potential buy or sell signals, and ensure that trades are executed at prices close to the average, improving their overall trade execution strategy.