Volume Weighted Average Price

The volume-weighted average price (VWAP) is a useful trading tool. It is the average traded price of a stock adjusted for volumes at given price points and is calculated using intraday data. The VWAP is calculated by taking the average of a stock’s high, low and close, multiplying that by volume and dividing the result by the day’s cumulative volume. Trading against VWAPs helps traders determine entry and exit points.