Multi-timeframe VWAP with Standard Deviation Bands
VWAP is a moving average that takes traded volume into its weighting. Heavier trading activity has a greater impact on its direction. Low volume periods will have a smaller impact on the VWAP compared to high volume periods.
The VWAP is important because institutional investors often use it to determine what the ‘fair value’ of the asset is. There is likely going to be a reaction when price goes near the VWAP.