VWAP Biz
The Business of VWAP
Category: The VWAP Wave System
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A buy or sell limit resting at a predefined level, well away from price. Most days it never fills. Then a spike reaches out for a moment, takes the order, and returns. I call that wick a Madonna. The sequence, the stop, and the fill that doesn’t come back.
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Forget the pattern names. Every candle is a vote: the body is what the market agreed on, the wick is what it argued about and lost. How I read wicks at VWAP and the bands, and why the close matters more than the poke.
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Supplementary reading. Why a deviation band is a statistical description, not a wall, and what actually has to be true before fading one.
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Supplementary reading. VWAP tells you the average price; Volume Profile tells you where the business was done. How the two confirm each other at a level.
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A setup is not a trade. An A beside a C on real sessions, structural stops, the daily limit that closes the platform, and the journal column that actually matters.
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Knowing the four setups is worth almost nothing until you can name the condition. The Initial Balance, acceptance versus rejection, and two mornings that told you by 11:30.
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Price Discovery Continuation, Fade Value Area Extremes, Return to Value, and the VWAP Bounce, each on a real ES session with the condition that makes it valid.
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Deviation bands turn VWAP into a map. A balanced day and a trend day side by side, and why beyond the second band there’s no in-between.
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One line, rebuilt every session: what VWAP is, why I threw away a cockpit of indicators for it, and the mistake of trading just the line.