VWAP

#OpenDrive #intradaytrading #priceaction #VWAP #CryptoStrategy
When markets gap and run from the open, most traders either freeze or chase too late. This tight playbook helps read the first 15 minutes and execute cleanly on genuine “open‑drive” sessions—while standing down on fake starts.
What is an open‑drive day
Strong directional push from the open with expanding volume and shallow pullbacks.
VWAP holds on the side of the drive; early attempts to fade get absorbed.
Range forms later; the best entries come early with structure.
Pre‑open checklist (2 minutes)
Context: Are we opening above/below the prior day’s value and near weekly levels (WLH/WLL)?
Leadership: ETH/BTC rising for alts, or BTC leading if ETH/BTC flat/down.
Flows: If the last two ETF flow prints are red, cut size even if open looks strong.
Minute‑by‑minute plan
Minutes 0–5
Mark the opening range high/low (ORH/ORL).
Note VWAP placement relative to price and opening gap.
No trades yet—let the first flush/impulse print.
Minutes 5–10
Drive confirmation:
Price holds above ORH with volume ramping and VWAP below price (for longs).
Pullbacks are 20–40% of the initial leg and get bought within 2–3 candles.
Entry 1 (aggressive): Break-and-go through ORH with volume; stop just below the micro pullback low.
Minutes 10–15
Entry 2 (conservative): First pullback to ORH or VWAP that holds and closes back in trend direction.
Invalidation: A 1–3 minute candle closing back inside the opening range with volume—stand down; it’s not a clean drive.
Risk and sizing
Risk per trade ≤0.25% of equity if running four names; max 1%/day.
If stop distance >0.8–1.2% on BTC/ETH or >2–3% on liquid alts, skip or reduce size.
Never widen stops after entry; open-drives either work quickly or they don’t.
Targets and management
First target: Measured move = height of opening range added to ORH (or subtracted from ORL for shorts).
Second target: Prior day high/low or nearby weekly level.
Trail: Use a 1–3 minute swing low (for longs) until the first 15 minutes pass, then trail under 5–15 minute higher‑lows.
When to fade an open instead
Massive gap into higher‑timeframe resistance with funding extremely positive and early wick rejections.
Failure to hold VWAP within the first 10 minutes plus a close back inside the opening range.
Play selection matrix
Strong gap + hold above ORH + VWAP support: Play Entry 1 or 2.
Inside prior day range + choppy OR: Skip—await a later setup (3‑candle test or box break).
News/event in 60 minutes (CPI/FOMC/ETF): Use half size or wait.
Two ready-made alerts to set nightly
“ORH/ORL cross with 2x 1‑min volume” → ping for Entry 1.
“Pullback to ORH/VWAP with bullish engulfing” → ping for Entry 2.
Common mistakes to avoid
Entering before OR forms.
Adding on every uptick; one add only after the first higher‑low above ORH.
Holding losers once price re-enters the opening range with volume.
$BTC

The Volume Weighted Average Price, or VWAP, is not just another line on your chart. It’s a reality check for anyone trying to figure out whether they’re buying the dip or diving into a trap. If you’re serious about understanding whether Bitcoin or any other asset is genuinely undervalued or just on its way to a deeper plunge, VWAP is where you start. It combines price and volume, giving you a dynamic "fair value" that tells you exactly where the bulk of trading has occurred. When price stays above VWAP, it usually means buyers are in control; below it, sellers dominate. It’s not about a single breakout or a quick scalp—it’s about where the market truly values the asset.

Here’s the deal: most traders, especially those looking to buy the dip, tend to chase bottoms without understanding whether the selling pressure has actually dried up. VWAP helps you see through that. When the price is below VWAP, it means that, on average, those who bought earlier are holding a loss. They’re likely waiting for the price to come back up to break even, which often creates resistance around that level. On the flip side, when the price is above VWAP, it signals that the average position is in profit, and buyers are more likely to keep pushing it upwards. The real advantage here is that VWAP isn’t just a line—it’s the line that the biggest players care about. Institutions, whales, and anyone moving serious volume often use it as a benchmark. They’re not buying below VWAP without a good reason, and neither should you.

One of the most effective ways to use VWAP is to wait for a failed breakdown. If the price falls below VWAP but quickly snaps back above it, that’s often a sign that the selling pressure was weak and buyers are reclaiming control. You don’t just want to blindly long because the price hit some arbitrary level; you want to see the price reclaim VWAP as confirmation that momentum is shifting. Similarly, when the price is grinding below VWAP and fails to reclaim it after several attempts, it’s often a red flag. That’s not a dip—it’s a freefall waiting to happen.
Now, a quick reality check: you won’t find VWAP on the Binance mobile app. That’s frustrating, but it’s the truth. Your best bet is using the desktop version of Binance, where VWAP is available in the advanced trading view. Alternatively, platforms like TradingView offer VWAP on practically every chart. For those stuck with mobile, Bollinger Bands (BOLL) can be a rough substitute. The middle band of the BOLL indicator can act similarly to VWAP in terms of showing a fair value during periods of mean reversion. While it’s not perfect, it’s better than nothing if you’re on the go.
One thing to remember is that VWAP is inherently a day-based indicator, so it resets with each new trading session. If you’re looking to make long-term predictions, you’re better off combining VWAP with higher timeframe moving averages or volume profiles. Use VWAP for the real-time pulse, but always contextualize it with broader market structure. It’s not the holy grail, but it’s one of the most honest indicators you’ll find. When used correctly, it’s not just about catching a bounce—it’s about knowing when the market agrees with your entry.
#TechnicalInsights #VWAP