VWAP (Volume Weighted Average Price) is an indicator that calculates the average price at which an asset traded over a given period, weighting each transaction by its volume. Unlike a standard moving average, VWAP only accounts for actual transactions, making it a neutral and hard-to-manipulate reference. Professionals use it as an execution benchmark: a buy order executed below VWAP or a sell order above it is considered a good execution. On February 8, 2022, bitcoin crossed its annual VWAP around $42,500, a level that had acted as resistance for several months before turning into support after the break. VWAP is primarily a tool for evaluating execution quality, not a buy or sell signal, and it is available for free on platforms such as TradingView.
Source: Read the original article
