VWAP
Volume-Weighted Average Price. An average trading price that gives more weight to prices where more trading happened.
VWAP stands for volume-weighted average price. It is the average price of everything traded during a period, where prices that saw more trading count more. It is drawn on the chart as a single line that updates as new trades happen.
Many traders use VWAP as a fairness line. Price above VWAP means buyers have been paying more than the average so far. Price below it means the opposite. Some watch how price reacts when it returns to the line.
VWAP describes what has already happened. It does not forecast where price goes next, and it works best alongside structure such as trend, support and resistance.
Example: a market trades mostly near $30 early in the day and briefly at $35 on light volume. VWAP stays close to $30 because most trading happened there.
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Educational definition. Not financial advice; no real-money execution.