Welcome to our final lesson in this course, Explorer! In this lesson, we will delve into the concept and calculation of Volume Weighted Average Price (VWAP) specifically for Tesla ($TSLA) stock data using Pandas. VWAP is a crucial indicator in trading that helps by providing the average price a security has traded at during the day, weighted by volume. By the end of this lesson, you'll be able to calculate VWAP and visualize it alongside the closing prices of Tesla stock data.

Volume Weighted Average Price (VWAP) is a trading benchmark that gives traders insight into both the price and volume of trades for a particular stock. It represents the average price a stock has traded at throughout the day, weighted by volume.

VWAP is used by traders to identify the average price at which a stock was traded over a given period, reflecting both the price and the traded volume. It helps in determining the efficiency of stock execution by comparing it against the market's average.

The VWAP is calculated using the cumulative sum (the running total) of the volume and the volume-weighted prices:

$VWAP=\frac{{\sum }_{i=1}^n(P_i\times V_i)}{{\sum }_{i=1}^n{V}_{}}$