Market lesson · Market lessons
When VWAP becomes resistance
Failed reclaims tell you who is in control.
A stock that loses VWAP and fails three attempts to reclaim it in the same session is showing persistent selling pressure. Each failed reclaim adds more trapped buyers above the line.
The VWAP line as a ceiling.
Price bounces toward the VWAP line, sellers step in, price fades back. The pattern repeats with slightly lower highs. By the third failed attempt, momentum traders start fading the bounces rather than buying them.
Three tests is a message.
One failed reclaim is a data point. Two is a warning. Three is a pattern: sellers are actively defending the level. When you see this, the path of least resistance is lower until something changes volume or structure.
A stock failed to reclaim VWAP three times in one session. What does that pattern suggest about intraday direction?
Show the answer
C. Sellers are in control and the path of least resistance is lower. Three failed reclaims mean sellers actively defended the level each time. That is a consistent pattern, not noise.