VWAP Pullback Bounce
LONGThe tell: Strong trend above VWAP; first orderly pullback tags the rising VWAP and holds.
- What it looks like
- A strong trend holding above VWAP, then the first orderly pullback that tags the rising VWAP — and bounces.
- Why it works
- Institutions benchmark fills to VWAP; in an uptrend their resting bids sit there, and dip-buyers front-run them.
- Entry
- Break of the bounce candle's high right off the VWAP touch.
- Stop
- Below the bounce low, just under VWAP.
- Target
- Prior high first, then trail — trend legs off VWAP often extend.
- How it fails
- Price knifes through VWAP and closes below — the trend day is in question; don't argue with it.
Reading it in a textbook is not the same as spotting it live. Drill the vwap pullback bounce on charts generated fresh every time, or try today’s five.