Wick

VWAP reversion

Day Trading

Fade the stretch

Price stretched 2%+ from VWAP with momentum dying = rubber band trade back toward the benchmark. Needs exhaustion evidence. Never fade raw strength on catalyst days.

Check yourself

The VWAP fade fails hardest when…

  1. Volume is low
  2. There's a strong catalyst, stretched keeps stretching correct
  3. It's Tuesday

Mean reversion assumes normalcy. Real news suspends normalcy. Don't stand in front of it.

Learn this properly

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