VWAP (Volume Weighted Average Price) shows the average price an instrument has traded at since the start of the current trading session, weighted by how much volume traded at each price level - a price level where heavy volume traded pulls the VWAP toward it more than a level where only light volume traded. It resets at the start of every new session, making it a purely intraday tool, and is widely watched as a benchmark for whether current price is trading above or below the “average” participant’s cost for the day.
Related Reading
See how it’s calculated and used in VWAP Explained on TradingView.