What is VWAP?
VWAP (Volume Weighted Average Price) is the average price of an asset weighted by trading volume over a specific period (typically a trading session). It's used by institutional traders as an execution benchmark and by intraday traders as a dynamic support/resistance level.
More detail
VWAP is calculated cumulatively from session open, so it lags less than fixed-period moving averages.
Price above rising VWAP indicates an intraday uptrend; below falling VWAP indicates a downtrend.
Many institutional traders are benchmarked against VWAP, which creates real mechanical reasons VWAP acts as support/resistance.