The Volume Weighted Average Price (VWAP) is one of my favorite “psychological” indicators to use in the market. It can really give you an idea of where market participants took action and what the thinking could be around those levels. What better way to get inside the mind of fellow traders than an average price,
VWAPs Of Index ETFs
The Volume Weighted Average Price (VWAP) is just an indicator, nothing more. It’s not a holy grail, it’s not a signal to buy/sell, it’s imply the average price over a given period of time. One could argue though that the VWAP is used quite regularly in some algos, just not so sure about larger time