VWAP Trading Strategy: Intraday Institutional Levels
VWAP is the institutional benchmark. Learn a complete VWAP trading strategy for intraday CFD trading. Mean-reversion and trend rules around VWAP, with stop.
The Strategy
VWAP acts as a magnet for price. Buy when price is below VWAP, sell when above — mean reversion to the average.
Long Entry
Price below VWAP by 1xATR. Reversal candle appears. Enter long. Stop below recent low. Target: VWAP.
Trend Filter
Only trade VWAP mean reversion when ADX < 25. On trend days, VWAP is support/resistance — trade with trend.
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Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70-80% of retail investor accounts lose money when trading CFDs. Backtesting does not guarantee future results. Always consider whether you can afford the potential loss of your capital.