VWAP stands for Volume Weighted Average Price. It shows the average price of a stock based on both price and volume.
VWAP is widely used in intraday trading to identify fair value. Price above VWAP indicates bullish bias, while price below VWAP indicates bearish bias.
Traders use VWAP for entries, exits, and trend confirmation. It works best on intraday time frames.
VWAP should be used with price action and volume, not as a standalone signal.
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