VWAP intraday pullback
Intraday · Difficulty: Advanced
The idea
VWAP is the volume-weighted average price for the session. Many day traders treat it as a fair-price line: trading above it is seen as strong, below as weak.
Indicators and settings
VWAP with Volume on a 5 or 15 minute chart (stocks and crypto with volume only).
Entry rule
Consider a long when price is above VWAP, pulls back to it and holds, then pushes up again on rising volume.
Exit rule
Exit if price closes back below VWAP, or take profit at the day's high or about 2 times your risk.
Stop-loss and risk rule
Stop a little below VWAP or the pullback low. Day trading magnifies fees and slippage: keep size small.
Best conditions
Liquid stocks and crypto during active sessions.
Pitfalls
- Needs reliable volume, and our delayed free feeds can lag.
- Costs and fast moves hurt beginners most.
- VWAP resets each session, so early readings are unstable.
Try it on the desk → Position-size calculator All strategies
Illustration only; ignores slippage, tax and most costs. Not financial advice.