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VWAP Reclaim

Use price acceptance above VWAP as part of an intraday continuation framework.

Key idea

VWAP (volume-weighted average price) represents the average price paid by participants so far in the session. When price loses VWAP intraday and then reclaims it with acceptance, it signals that buyers (or sellers, on the short side) have regained control of the session's average — a common continuation trigger for intraday trend traders.

How to apply it

  • Establish the session's directional bias first (opening drive, prior trend, higher-timeframe context).
  • Watch for a pullback that loses VWAP intraday, then look for a reclaim rather than trading the loss itself.
  • Confirm acceptance above VWAP — multiple candles holding above, not a single wick poke.
  • Combine with a nearby structural level (prior high, opening range) for confluence rather than trading VWAP in isolation.

Confirmation and trade planning

Entry triggerMultiple candles holding above VWAP after the reclaim, ideally with nearby structural confluence
Stop placementBelow VWAP or the reclaim candle’s low
Target frameworkPrior session high, or a measured move from the range that preceded the VWAP loss
Best useIntraday

Aggressive versus conservative approach

AggressiveConservative
TriggerEnter on the first close back above VWAPWait for a second candle confirming acceptance above VWAP
Trade-offMore false reclaims in choppy sessionsLater entry, less room before the next resistance

Targets are planning references, not forecasts. Position size should be derived from defined account risk and the actual invalidation distance.

Example

A stock trending up all morning dips below VWAP on a lunch-hour lull, then reclaims it on rising volume in the early afternoon with two consecutive candles holding above — that reclaim, aligned with the day's uptrend, is the setup.

Checklist

  • I established the session's directional bias before looking for a VWAP reclaim
  • The reclaim shows multiple candles of acceptance, not one wick
  • There's a nearby structural level adding confluence
  • I'm not trading VWAP crosses in isolation with no other context

Common mistakes

  • Trading every VWAP cross as a signal regardless of context
  • Entering on a single wick above VWAP before acceptance is confirmed
  • Ignoring the day's broader trend or opening range
  • Using VWAP reclaim setups on choppy, rangebound sessions