Algorithmic Trading can be a complex subject. Keep your knowledge current with this glossary of key concepts, terminology, and technical indicators.
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.