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VWAP Reversion

Classic TA

Price is a rubber band; VWAP is the hand holding it, wait for the snap.

how vwap reversion works
+2 ATR stretch → SELLVWAP, volume-weighted fair valueprice reverts

What it does

VWAP is the volume-weighted 'fair' price institutions benchmark against. When price stretches more than two ATRs away without new information it tends to snap back, but only if it isn't trending hard. This version confirms the stretch with a matching RSI extreme, a reversal candle, and a VWAP that isn't sloping away from the trade.

How it works

  1. 1Compute VWAP (on the chart) and RSI (in the sub-pane).
  2. 2Confirm 1: price ≥2 ATR from VWAP. Confirm 2: RSI agrees (discount/premium).
  3. 3Confirm 3: a reversal candle prints. Confirm 4: VWAP is flat, not trending away.
  4. 4Fires only when the stretch is confirmed by momentum and price action.