What VWAP does, and when it works.
VWAP (Volume-Weighted Average Price) is the average price weighted by volume across a session. It represents the 'fair' average cost of participants for the day, which is why institutions benchmark fills against it.
For intraday crypto it is arguably the single most useful line on the chart: price above VWAP is bullish-biased for the session, below is bearish, and reclaims/rejections of VWAP are clean, high-participation decision points. Anchored VWAP from a major swing or event is even more powerful.
VWAP resets each session, so it is a day-trading tool — not a swing or position level.