// Definition
VWAP, the Volume Weighted Average Price, is the average price traded during a session, weighted by how much volume traded at each price.
Explained simply
Because it accounts for volume, VWAP shows the average price most of the session's trading actually happened at. Price above VWAP suggests buyers are in control for that session; below it, sellers.
It is mainly used on intraday charts and resets at the start of each session.
Tip
VWAP is most useful on short timeframes for day trading. It means little on a daily or weekly chart.
For education only, not financial advice. Trading is risky and you can lose money.