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A stock may be bullish if it is trading above the intraday VWAP, while a stock trading below intraday VWAP may be bearish.

VWAP is calculated by multiplying the typical price by volume and dividing by total volume.

Traders use VWAP to assess if a security is trading above or below it's average price for the day and to gauge market momentum.

MVWAP,or Modified VWAP, is a moving average of VWAP over a specified period, often used for intraday analysis.

While commonly used for stocks, VWAP can also be applied to other securities like futures and options

Besides price, VWAP also considers the factor of volume, which is why it gives more weightage to those price points with higher volumes. Hence, traders get a clear picture of the price action. In contrast, moving averages do not factor in the volume at any given point.

Factors such as market volatility, order size, and timing can affect VWAP's accuracy as a trading benchmark

VWAP is a lagging technical indicator. The VWAP qualifies as a lagging indicator since its calculation is based on historical data.

Unlike other technical indicators, the VWAP is the same on all time frames because it’s the average price of all trades, including volume on the day. The amount of trading and volume on the day does not change between time frames.