VWAP is most likely to be used by traders and chartists. Volume weighted average price (VWAP) is a type of moving average indicator. This valuable indicator is used by retail traders, institutional traders, and market makers. A VWAP is shown as a moving average line on a chart. On an intraday chart, the line represents a moving average that monitors the price over the entire volume.

The Volume Weighted Average Price (VWAP) indicator is a trading benchmark that calculates the average price of an asset based on both its price and trading volume over a specific period. It provides insight into the true market value of an asset by weighting prices according to the volume traded at each level. Traders use VWAP to assess whether an asset is being bought or sold at a fair price relative to its trading activity. It is particularly popular among institutional investors for executing large orders without significantly impacting the market price. Day traders also use VWAP to identify trends, gauge market sentiment, and make informed entry or exit decisions. Overall, VWAP is a valuable tool for analyzing price efficiency and optimizing trade execution.