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VWAP Cross

Dictionary Says

Definition of 'VWAP Cross'

A trading indicator that occurs when the current price crosses over the volume-weighted average price (VWAP). Since the VWAP provides a measure of the average price within a time period, traders often look to buy a security at a VWAP cross price lower than the VWAP. Conversely, when the current price crosses above the VWAP, it may be an indicator to sell.
Investopedia Says

Investopedia explains 'VWAP Cross'

The VWAP cross indicator falls under the category of technical analysis techniques that are sometimes used in securities trading. It is particularly popular within the foreign exchange markets, although it can be applied to any traded security. The idea is that the VWAP provides a loose indicator of an equilibrium price in the market, and thus gives a good idea of when to buy or sell in the short term.

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