VWAP Reclaim

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.

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