Order flow & volume

VWAP

Also known as: volume weighted average price

VWAP (Volume Weighted Average Price) is the average price of an instrument over a period, weighted by volume.

Institutions use VWAP as an execution benchmark, so intraday price often gravitates to and reacts around it. Standard-deviation bands mark stretched conditions, and price above or below VWAP frames intraday bias. Algovex provides VWAP with optional bands.

Related terms

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