Technical Analysis

VWAP

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

Plain-English context

Why it matters

Chart terms organize observed price and volume behavior, but they remain descriptions rather than guarantees.

EXAMPLE

A chart may display vwap differently on daily and weekly timeframes, so the timeframe and calculation method should always be identified.

COMMON MISTAKE

Treating VWAP as a prediction instead of one piece of historical context.

Use current definitions. Product terms, tax treatment and market rules can change. Confirm important details with official disclosures, regulators and regulated providers.