VWAP Quick Reference — Setups & Rules

What is VWAP?

Volume Weighted Average Price — the average price weighted by volume for the trading day. It's the institutional benchmark: above VWAP = buyers in control, below = sellers.

Key Setups

Bullish

VWAP Reclaim

Price drops below VWAP then pushes back above with volume
Entry: On the reclaim candle close above VWAP
Stop: Just below VWAP

Signal: HIGH with volume confirmation

Bearish

VWAP Rejection

Price approaches VWAP from below and gets rejected
Signals continued weakness
Avoid longs until VWAP is reclaimed

Signal: HIGH if multiple rejections

Bullish Continuation

VWAP Hold & Go

Price pulls back to VWAP, holds, then bounces
Entry: On the bounce with increasing volume
Stop: Below VWAP

Best setup for momentum continuation

Bullish

Opening Drive Above VWAP

Stock opens and immediately drives above VWAP
Shows strong demand from the open
Entry: First pullback to near VWAP
Caution: Extended moves often pull back

Signal: HIGH on first test

VWAP vs AVWAP

	VWAP	AVWAP (Anchored)
Resets	Daily	You choose the anchor point
Best for	Intraday trading	Multi-day trend analysis
Use when	Day trading momentum	Swing trading, checking trend since catalyst

RVOL (Relative Volume)

RVOL < 1.0 Below average volume — weak conviction
RVOL 1.0-2.0 Normal range — proceed with caution
RVOL 2.0-5.0 Elevated — good momentum signal
RVOL 5.0+ Extreme — high conviction, but watch for traps

Go Deeper

Read the full VWAP & Volume guide for detailed strategies and real chart examples.

Read the Full VWAP & Volume Guide →