GLOSSARY · MARKET STRUCTURE
What is VWAP (Volume-Weighted Average Price)?
VWAP is the average price of the session weighted by volume — the market's fair value for the day.
Institutions use VWAP to judge execution quality, so price often reacts at it. Trading above VWAP suggests buyers are in control; below it, sellers.
Common VWAP setups are reclaims (price crosses back above and holds) and rejections (price tests VWAP and fails).
EXAMPLE
NQ drops below VWAP at 10:05, then closes back above it at 10:20 with rising volume — a VWAP reclaim long.
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