Combining VWAP With Order Flow
VWAP gives me context. Order flow helps me study the reaction.
Suppose NQ pulls back toward VWAP during an established intraday uptrend.
Buying immediately at VWAP might seem attractive, but the level alone doesn't confirm a trade.
I would examine whether selling pressure is slowing, whether aggressive buyers are returning, and whether price begins to recover.
The opposite situation can occur when price approaches VWAP from below and struggles to reclaim it.
Neither scenario guarantees a reversal.
I use VWAP to identify an area of interest and order flow to examine what happens there.
A reference level tells me where to pay attention. The market's reaction helps me decide whether my setup is developing.