VWAP

The average price everyone actually paid.

VWAP is the average price of the day, weighted by how much volume traded at each price. It is not a technical signal so much as a benchmark: it is the price the average participant actually got. VWAP = Σ(price × volume) ÷ Σ(volume), running from the session open Price above VWAP Buyers today are paying more than the day's average. The session is being controlled by buyers. Price below VWAP Sellers are in control. Why institutions care A large buyer is measured against VWAP. Buying below it is a good fill; above it is a bad one. VWAP resets every session, which makes it an intraday tool and nothing else. Reading it on a daily chart is a category error, though plenty of people do it.

Part of Learn NEPSE Investing, a free course on reading Nepali company accounts and charts. Section: Charts.