VWAP weights price by traded volume, giving a benchmark of the session's fair value.
Institutions often reference VWAP for execution quality, which is why it can act as a magnet or reference zone.
VWAP is a benchmark, not a predictor.
The Volume Weighted Average Price is a benchmark that reflects the average price weighted by volume across a session.
VWAP weights price by traded volume, giving a benchmark of the session's fair value.
Institutions often reference VWAP for execution quality, which is why it can act as a magnet or reference zone.
VWAP is a benchmark, not a predictor.
Sources: Educational framework — KRV FinMart