💡 Tip: Use TradingView to monitor VWAP levels and NinjaTrader for order flow confirmation with delta or volume spikes.
🔹 Strategy 2: VWAP Bounce
- Setup: Price taps VWAP then shows strong rejection (wick + volume spike)
- Timeframe: 1–3 min candles
- Entry: Enter on bullish/bearish confirmation candle from VWAP test
- Stop Loss: 2–3 ticks
- Take Profit: 4–6 ticks, or next zone (previous high/low)
- Confirmation: Volume spike or order flow support via NinjaTrader
🧪 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 “pullback” → it shows a temporary retracement, followed by confirmation:
- Wick rejection
- Engulfing candle
- Volume spike
📈 Real-World Trade Example
✅ 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: 2–3 ticks below the wick.
- Target: +5 ticks, or previous high.
Why it worked: VWAP acted as dynamic support and volume confirmed buyer presence.