Uptrends produce higher lows.
We know this for a fact.
So wouldn't it be useful to see how investors are performing relative to a variety of significant higher lows?
That's where the AVWAP comes in.
If price < AVWAP from a higher low, then it probably isn't in an uptrend on that timeframe, even if price is higher today than it was at the time of the higher low.
Why?
Because uptrends typically make investors richer... not poorer... and the relationship between price and AVWAP helps to determine if investors are actually in profit or at a loss, since AVWAP represents the market's cost basis over a specific period of time.
Price > AVWAP = uptrend confirmation on that TF.
Price < AVWAP = downtrend confirmation on that TF.

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