// TRADING TERMINOLOGY
What is VWAP (Volume Weighted Average Price)?
A technical indicator that calculates the average price of an asset weighted by total volume traded during a specific period (usually daily).
In-Depth Explanation
VWAP is considered the "fair value" for the day. Institutional traders often use it as a benchmark for their execution—buying below VWAP and selling above it.
Practical Example
"The price pulled back to the VWAP line before continuing its intraday trend."
Related Terms
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