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Volume-Weighted Average Price (VWAP)
Technical Analysis
VWAP is the average price of the day's trades weighted by their volume; it starts from scratch at the beginning of each trading day.
Institutional investors use it as a benchmark to judge whether they filled large orders at a good average price. Price above VWAP means the stock is trading above the day's volume-weighted average so far; it describes position relative to the day's average, not a forecast.
Example
If 100 shares traded at $10 and 300 at $12 during the day, VWAP is (1,000 + 3,600) / 400 = $11.50.
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