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Patterns › VWAP reclaim vs VWAP rejection

Look-alikes

VWAP reclaim vs VWAP rejection

They look alike, so beginners mix them up. Here is what each one means, and how often each one worked on real charts.

VWAP reclaim

Price spent hours below the day's average price, then closed back above it.

VWAP stands for volume-weighted average price. It averages the typical price, the high plus the low plus the close divided by 3, and gives more weight to candles with more trading. Our VWAP restarts every day at midnight UTC, the world's standard clock time, so we only use it on 1-hour charts. A VWAP reclaim is when price closes below VWAP for 6 hours in a row, then a green candle closes back above it.

Forgetting that VWAP restarts every day, so early in the day it is based on only a few candles.

The vwap reclaim in full ›

VWAP rejection

Price spent hours above the day's average price, then closed back below it.

VWAP averages the typical price of each candle, the high plus the low plus the close divided by 3, and gives more weight to candles with more trading. Our VWAP restarts every day at midnight UTC, the world's standard clock time, so we only use it on 1-hour charts. A VWAP rejection is when price closes above VWAP for 6 hours in a row, then a red candle closes back below it. Here, rejection means price lost VWAP after holding above it, a hint that sellers are taking over the day.

Forgetting that VWAP restarts every day, so early in the day it is based on only a few candles.

The vwap rejection in full ›

Real odds side by side

PatternFoundTarget firstStop firstWent nowhere
VWAP reclaim15,01536%56%8%
VWAP rejection15,69537%57%6%

Counted by the Trading Class research engine on real past candles: entry at the signal candle's close, target 1.5 × ATR(14), stop 1 × ATR(14), 12 candles to decide, a candle that touches both counts as the stop. How we count. Past data, not a forecast and not advice.