Section 3 · Chart Reading
VWAP
The benchmark every institution uses — and every trader should know.
VWAP is where the average dollar traded today.
Resets every morning at 9:30 AM. Institutions are often legally required to benchmark vs VWAP. Above VWAP = bullish bias. VWAP reclaim after a dip = one of the cleanest re-entry signals.
3 things to know
VWAP resets at 9:30 AM every session — it is a fresh indicator every day.
Institutions are often mandated to execute near VWAP — it is a legal benchmark.
A stock reclaiming VWAP after a dip is one of the cleanest momentum re-entry signals.
Key vocabulary — tap each card
Practice
VWAP intraday chart
Orange circle = VWAP reclaim — a high-probability long entry.
Did you know?
When a momentum stock pulls back to VWAP and bounces — especially in the first 30 minutes — that is the "VWAP hold" setup. The institutional bid at VWAP creates a natural floor. Many of the cleanest momentum entries happen exactly here.