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The VWAP Bounce Strategy – BankNifty Traders’ Favourite Setup!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? 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!
NSE:BANKNIFTYEducation
by TraderRahulPal