The volume-weighted average price (VWAP) is a trading indicator that calculates the average price at which a particular asset has been traded throughout a given period, taking into account the volume of each trade. The formula for calculating VWAP is as follows:

VWAP = ∑(price x volume) / ∑(volume)

This formula takes into account the total trading volume of an asset during a specified time period, multiplied by the price of each trade. The sum of all these values is then divided by the total trading volume to give the VWAP.

The VWAP is commonly used by institutional traders and large investors as a benchmark for the execution of trades, with the aim of achieving prices that are close to the VWAP. It is also used as an indicator of the overall trend in a particular asset's price, with prices above the VWAP suggesting a bullish trend, and prices below the VWAP suggesting a bearish trend.