VWAP (Volume Weighted Average Price)

VWAP is the average price a stock traded at throughout the day, weighted by how many shares were bought and sold at each price level. Instead of just averaging all prices equally, VWAP gives more importance to prices where lots of trading happened. You'll see traders use it to spot whether a stock is trading above or below its "fair" intraday value—if the price is above VWAP, it suggests buying pressure; below it suggests selling pressure. For example, if TechCorp stock traded 1 million shares at $50 and 500,000 shares at $52, the VWAP would lean closer to $50 since more volume happened there. It's most useful for day traders and swing traders watching intraday momentum.