[[https://www.xpressnets.com/wiki/doku.php?id=gptplaybook|Back]] > **๐Ÿ’ก Tip:** Use TradingView to monitor VWAP levels and NinjaTrader for order flow confirmation with delta or volume spikes. ===== ๐Ÿ”น Strategy 2: VWAP Bounce ===== [[VWAPDEF|VWAP Definition]] * **Setup**: Price taps VWAP then shows strong rejection (wick + volume spike) * **Timeframe**: 1โ€“3 min candles * **Entry**: Enter on bullish/bearish confirmation candle from VWAP test * **Stop Loss**: 2โ€“3 ticks * **Take Profit**: 4โ€“6 ticks, or next zone (previous high/low) * **Confirmation**: Volume spike or order flow support via NinjaTrader {{ :vwapbounce.jpg?400 |}} {{ :vwapbounce1.jpg?400 |}} {{ :vwapbounce2.jpg?400 |}} === ๐Ÿงช VWAP Bounce Checklist === * Price approaches VWAP from above or below * Rejection wick or strong engulfing candle * Volume spike confirms institutional activity * Enter on confirmation, stop just beyond rejection * Target next logical zone (e.g., previous high/low) **Pullback:** Price pulls back toward **VWAP** (a dynamic support/resistance level), pauses, and then resumes in the original trend direction. The bounce is the โ€œpullbackโ€ โ†’ it shows a **temporary retracement**, followed by **confirmation**: * Wick rejection * Engulfing candle * Volume spike === ๐Ÿ“ˆ Real-World Trade Example === โœ… VWAP Bounce **Example:** * **At 9:10 AM CST, price pulls back to the VWAP after a strong opening rally.** * **A long wick forms below VWAP, followed by a bullish engulfing candle with rising volume.** * **Trade Entry:** Long on the engulfing candle close. * **Stop Loss:** 2โ€“3 ticks below the wick. * **Target:** +5 ticks, or previous high. **Why it worked:** VWAP acted as dynamic support and volume confirmed buyer presence. [[https://www.xpressnets.com/wiki/doku.php?id=gptplaybook|Back]]