VWAP intraday pullback

Intraday · Difficulty: Advanced

Education only. Delayed data. Past results do not predict future results. Not financial advice, and no strategy here promises a profit. Every strategy can lose money, and a rule that worked on past charts may stop working. Practise with virtual money first.

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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.

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Illustration only; ignores slippage, tax and most costs. Not financial advice.