Price was ripping

So I jumped into a trade on GBP/USD thinking I had spotted a clean breakout. Price was ripping, volume looked heavy, I was excited. But then I watched it stall right around this line everyone later told me was VWAP. I had no idea at the time, just thought it was coincidence. Of course, price reversed right at that level and I ended up closing red. Since then I keep noticing how many times the price hangs around that line like a magnet

 

I totally get that, I used to ignore VWAP and thought moving averages were enough. What changed my mind was noticing how institutions use it as a reference point. They don’t want to be caught buying too far above average cost or selling too low, and that shows up in how price reacts. What I found helpful was not treating it as just another line but as a kind of “fair value” area. For example, if price is above VWAP and volume supports the move, I lean bullish, but if it’s extended too far from it, I look for reversion trades. Another thing is the session reset — VWAP starts fresh every day, so it tells you how the current session is developing instead of mixing in old data. That really helped me avoid chasing outdated levels. I still combine it with support and resistance zones because VWAP alone isn’t enough, but it’s been a game changer for filtering trades. If you want a good breakdown that explains this in plain English, I’d recommend checking out https://forextester.com/blog/vwap/. That’s what I use when I want to refresh the logic behind it. The more I practiced with it, the less random the charts felt. My advice is to replay old sessions with VWAP applied, watch how price respects it, and you’ll start to see patterns you’d probably miss live.

 

What always amazes me is how much of this game is about perception. You can be staring at the same chart as someone else, but what looks like opportunity to you looks like danger to them. That gap in perspective is what makes the market alive — everyone acting on different beliefs, and somehow it all balances out.