VWAP (Volume-Weighted Average Price) is the average price of a stock or index weighted by volume since the open. A VWAP rejection is when price tests the VWAP line and turns away from it, often marking where big participants defend their average cost.
Why VWAP matters
Institutions benchmark fills against VWAP, so it acts as a magnet and a fair-value line intraday. Price above VWAP is generally considered bullish for the session; below is bearish.
How a VWAP rejection plays out
In an uptrend, price dips to VWAP, finds buyers and rejects higher — a continuation long. In a downtrend, price rallies into VWAP, sellers step in and reject lower — a continuation short. The failed test is the trigger; the stop sits just on the other side of VWAP.
How NSEStocksChart uses it
Our VWAP Rejection strategy runs on index options, Stock F&O and crypto with a recorded win rate for each timeframe, so you can compare it fairly against other setups.
Not SEBI-registered. Educational only — nothing here is investment advice.