Hello Traders!
If you love trading BankNifty, then you must’ve heard of the VWAP Bounce Strategy. It’s one of the most popular and reliable intraday setups used by professional traders. Simple to spot, easy to execute, and highly effective during strong trending days. Today, I’ll explain exactly how to use the VWAP bounce strategy to enter high-probability trades — with confidence and clarity.
What is VWAP & Why It Works?
How to Trade the VWAP Bounce Strategy
Check the BANKNIFTY Chart above for practical example
When NOT to Trade This Setup
Rahul’s Tip
“VWAP bounce works best when there’s clean trend & confidence from smart money.” Combine with volume and candle structure — and never force the trade.
Conclusion
The VWAP Bounce Strategy is loved by intraday traders for a reason — it provides structure, clarity, and clean entries. Especially in fast-moving indices like BankNifty, it can be your edge if traded with discipline.
Have you tried this strategy? Share your win/loss experience in the comments — let’s grow together!
If you love trading BankNifty, then you must’ve heard of the VWAP Bounce Strategy. It’s one of the most popular and reliable intraday setups used by professional traders. Simple to spot, easy to execute, and highly effective during strong trending days. Today, I’ll explain exactly how to use the VWAP bounce strategy to enter high-probability trades — with confidence and clarity.
What is VWAP & Why It Works?
- VWAP (Volume Weighted Average Price) acts as a dynamic support or resistance level during intraday moves.
- Institutional traders and smart money often watch VWAP for mean reversion entries or trend continuation setups.
- In BankNifty, VWAP bounces happen frequently due to high volatility, offering clean risk-reward trades.
How to Trade the VWAP Bounce Strategy
- Step 1 – Wait for a Trend to Establish
→ Price must be trading clearly above or below VWAP to confirm trend bias. - Step 2 – Let Price Pull Back to VWAP
→ Watch for a healthy retracement after a strong move. VWAP should act as a bounce zone. - Step 3 – Confirmation Candle Near VWAP
→ Look for a bullish/bearish engulfing, pin bar, or hammer candle on VWAP. - Step 4 – Entry, SL & Target
→ Enter after confirmation candle closes
→ SL: Below/above the candle or VWAP
→ Target: Recent high/low or 1:2 RR
Check the BANKNIFTY Chart above for practical example
When NOT to Trade This Setup
- Inside CPR Day: Sideways market with no momentum? Avoid it.
- Choppy Price Action Around VWAP: No clean bounce = no trade.
- News-Driven Volatility: Sudden spikes may break VWAP unpredictably.
Rahul’s Tip
“VWAP bounce works best when there’s clean trend & confidence from smart money.” Combine with volume and candle structure — and never force the trade.
Conclusion
The VWAP Bounce Strategy is loved by intraday traders for a reason — it provides structure, clarity, and clean entries. Especially in fast-moving indices like BankNifty, it can be your edge if traded with discipline.
Have you tried this strategy? Share your win/loss experience in the comments — let’s grow together!
Rahul Pal (TradingView Moderator)
Live Market Analysis on YouTube (8:45 AM - 3:30 PM): spf.bio/TArir
Free Telegram: spf.bio/c1lkb
Join Trading Community: realbullstrading.com
WhatsApp: wa.me/919560602464
Live Market Analysis on YouTube (8:45 AM - 3:30 PM): spf.bio/TArir
Free Telegram: spf.bio/c1lkb
Join Trading Community: realbullstrading.com
WhatsApp: wa.me/919560602464
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Rahul Pal (TradingView Moderator)
Live Market Analysis on YouTube (8:45 AM - 3:30 PM): spf.bio/TArir
Free Telegram: spf.bio/c1lkb
Join Trading Community: realbullstrading.com
WhatsApp: wa.me/919560602464
Live Market Analysis on YouTube (8:45 AM - 3:30 PM): spf.bio/TArir
Free Telegram: spf.bio/c1lkb
Join Trading Community: realbullstrading.com
WhatsApp: wa.me/919560602464
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.