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VWAP

VWAP is the volume-weighted average price for a chosen period, a participation-weighted reference rather than a simple price average.

VWAP weights each traded price by volume, so it reflects where more activity occurred instead of treating every price equally.

The calculation resets according to its anchor: session VWAP, anchored VWAP, and rolling VWAP answer different questions. A VWAP label without its anchor is incomplete.

Price above or below VWAP is descriptive context. It is not a rule that price must return or that a cross guarantees continuation.

LiquidityLevels provides informational and educational market commentary only. These definitions describe market language; they are not financial advice, trade signals, or predictions.

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