Price rallies up to VWAP from below and is turned away. VWAP acts as resistance for a session still controlled by sellers.
How to identify it
- Session trading below VWAP
- Rally stalls at or just through VWAP
- Rejection wick or bearish engulfing at the line
Entry
Sell the rejection candle at VWAP.
Stop loss
Above the rejection high.
Target
The session low or the lower VWAP band.
Invalidation
A strong close and hold above VWAP.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your vwap rejection trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.