đ„ VWAP: STOP CHASING CANDLES â START WAITING FOR CONFIRMATION
One of the biggest mistakes traders make is entering simply because price breaks VWAP.
A better approach is to wait for:
Break â Confirmation â Retest â Continuation
Rule #1 â Break + First Pullback
Look for:
âą Strong close above/below VWAP
âą Supporting volume
âą Clear market-structure break
Then donât chase the breakout candle.
Wait for the first VWAP retest.
If VWAP holds as support after a bullish breakout, it can provide a potential long setup.
Rule #2 â Acceptance Below VWAP
For a bearish setup, look for:
1. 3 consecutive 5-minute closes below VWAP
2. Price retests VWAP
3. VWAP rejects price as resistance
4. Price continues lower
One candle is not confirmation.
The key is combining:
VWAP + Volume + Market Structure + Order Flow
VWAP alone isnât a buy or sell signal. Itâs a reference point that can help structure your execution.
Donât predict. Wait for confirmation.
#Trading #VWAP #PriceAction
One of the biggest mistakes traders make is entering simply because price breaks VWAP.
A better approach is to wait for:
Break â Confirmation â Retest â Continuation
Rule #1 â Break + First Pullback
Look for:
âą Strong close above/below VWAP
âą Supporting volume
âą Clear market-structure break
Then donât chase the breakout candle.
Wait for the first VWAP retest.
If VWAP holds as support after a bullish breakout, it can provide a potential long setup.
Rule #2 â Acceptance Below VWAP
For a bearish setup, look for:
1. 3 consecutive 5-minute closes below VWAP
2. Price retests VWAP
3. VWAP rejects price as resistance
4. Price continues lower
One candle is not confirmation.
The key is combining:
VWAP + Volume + Market Structure + Order Flow
VWAP alone isnât a buy or sell signal. Itâs a reference point that can help structure your execution.
Donât predict. Wait for confirmation.
#Trading #VWAP #PriceAction