Technical Analysis

VWAP

Volume-weighted average price: the average traded price weighted by volume over a period.

Plain-English context

Put the definition to work.

ILLUSTRATIVE EXAMPLE

100 shares at $10 plus 300 at $12 have a volume-weighted average price of $11.50 for those trades, not the simple $11 price average.

IMPORTANT DISTINCTION

Specify the interval and included venues. A favorable comparison with VWAP alone does not establish a profitable decision.

Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. FINRA — investing insights

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