What is this indicator?
A volume-weighted average price that shows the real average price at which trading actually took place. Many institutional traders use VWAP as a benchmark for evaluating the quality of their trade execution.
How to read the chart
A rise happening alongside price movement confirms that move's validity; a divergence between volume and price is often a sign of a weakening trend.
Practical tip
Always check volume alongside price movement; volume on its own, without regard to the price trend, isn't a reliable signal.