VWAP pullback workflow (find → alert → review)¶
VWAP pullbacks are popular because they’re simple: - trend present - pull back toward VWAP - buyers defend
The failure mode is also simple: - you apply VWAP to a dead stock, or - you “know it will bounce” and interfere with the plan.
This page is the workflow.
Step 1: Only trade VWAP pullbacks in stocks in play¶
If the name isn’t in play, VWAP is just a line.
Use: - liquidity + dollar volume - RVOL / volume surge - avoid low-float cheap chaos - practical default: nothing under $15
Start here: - Stocks in play workflow - Liquidity filters - Relative volume
Step 2: Build a shortlist (5–20 names)¶
VWAP pullbacks are timing-based. You can’t watch 200 tickers.
Use a ranked list to create a shortlist: - Top List Window
Step 3: Define the trigger + invalidation (before the alert)¶
A usable trigger: - price pulls back toward VWAP - holds / reclaims VWAP - confirmation via volume / structure
Invalidation examples: - fails VWAP and loses the prior low - breaks a key level with volume
The key: you’re not allowed to “move the stop” because you want to feel in control. That’s interference.
Step 4: Alerts (so you aren’t glued to screens)¶
Tutorials: - Alert Window workflow - Alert window tips
Common mistakes (and how to fix them)¶
- Overfitting: too many conditions → you never take the trade
- Trading junk: low-float cheap names → sloppy fills and random wicks
- No time-of-day logic: lunch chop masquerading as “support”
- Over-sizing: “it looks obvious” is not a risk plan
If you need the discipline loop: - Trading psychology - Paper trading checklist
