VWAP Bounce
VWAP as dynamic support. Pullbacks to the line that reclaim it are high-probability continuation entries.
What is VWAP?
VWAP (Volume Weighted Average Price) is the average price of all trades in a session, weighted by volume. It's the single most important line on a professional day trader's chart — institutions benchmark their fills against it, and it often acts as dynamic support in uptrends and dynamic resistance in downtrends.
Why It Works
In an uptrend, when price pulls back to VWAP, institutional buyers step in to fill orders near their volume-weighted average. This creates reliable bounces off VWAP. The pullback-to-VWAP-and-reclaim is one of the highest-probability day trading setups because it combines trend direction with an objective entry level.
How to Trade Them
The rising blue line is the VWAP. Watch for an uptrend, then a pullback toward the line. When price tags VWAP and shows rejection — a reclaim candle that closes back above the line — that's your signal. Hit BUY near the reclaim.
Your Mission
Wait for the pullback to VWAP. Wait for rejection. Hit BUY on the reclaim candle. Stop goes below VWAP.