Volume Weighted Average Price ?
Volume-weighted average price, or VWAP, is a technical analysis tool that displays the relationship between an asset's price and its total volume of trades. It gives investors and traders a gauge of the typical price at which a stock is traded over a predetermined time frame. Investors who choose to be more passive in the market—typically pension funds and mutual funds—as well as traders who want to know whether a stock was purchased or sold at a fair price—often use VWAP as a benchmark. To calculate VWAP, you use the following equation: VWAP = ∑(amount of asset bought x asset price)/total shares bought that day The standard VWAP is calculated using all of the orders of a given trading day, but it can also be used to look at multiple time frames. The VWAP ratio is then presented on a chart as a line. It has been likened to a moving average, in that when the price is above the VWAP line the market is seen as in an uptrend, and when the price is below the VWAP the market is in a do...