Introduction
Most traders use VWAP the wrong way.
They treat it as an intraday indicator and ignore its true institutional purpose.
But when VWAP is applied on Weekly and Monthly timeframes, it becomes one of the most powerful swing-trading tools available. It tells you exactly where institutions accumulated, distributed, discounted, or overvalued price.
In this guide, youโll learn a clean, high-precision trading system that combines:
- Monthly VWAP (Macro Trend)
- Weekly VWAP (Weekly Flow)
- 4H/1H Structure
- Liquidity Sweeps
- POC & HVN Volume Zones
- Fair Value Gaps (FVGs)
This system gives you institutional-level accuracy while still trading with simple tools.
1. Understanding the Power of HTF VWAP
Monthly VWAP โ Macro Trend Engine
This line defines the fair value of the entire month.
When price is above, institutions are accumulating.
When price is below, institutions are distributing.
It is your compass.
Weekly VWAP โ Flow of the Week
This is your execution roadmap.
It shows how price interacts with weekly liquidity, weekly imbalances, and volume.
When combined with Monthly VWAP, you get a complete multi-timeframe model of institutional flow.
2. Identifying Trend vs Range
Trend Conditions
The market is trending when:
- Monthly VWAP angled
- Weekly VWAP angled
- Both pointing in the same direction
This alignment means the macro players and weekly liquidity flows agree.
Range Conditions
The market is ranging when:
- Monthly VWAP is flat
- Weekly VWAP oscillates around it
- Price bounces around both
This creates powerful mean-reversion trades at Weekly VWAP deviations.
3. The Structural Entry Model
All trades follow this sequence:
- Sweep
- BOS
- HL/LH formation
- Retrace into VWAP + confluences
- Reject
- Entry
This ensures you enter after institutions sweep liquidity and confirm direction.
4. Trend Trading Model
A bullish continuation trade forms when:
- Monthly VWAP โ
- Weekly VWAP โ
- Price sweeps a 1H/4H low
- BOS upward
- HL forms
- Pullback into VWAP / deviation / POC
- Price rejects
- Enter long
The same applies inverse for bearish setups.
5. Range Trading Model
When Monthly VWAP is flat and Weekly VWAP is sideways, swings form beautifully:
- Buy at 2nd Weekly VWAP deviation below
- Sell at 2nd Weekly VWAP deviation above
- Confirm with liquidity sweep and structure shift
This is one of the highest-probability environments for swing intraday entries.
6. Risk Management
Stops always go:
- Below the swept liquidity for buys
- Above the swept liquidity for sells
Not at structure.
Not at VWAP.
Always at the liquidity you targeted.
7. Targets
Targets depend on context:
- Opposite deviation
- Opposing VWAP
- Untapped FVG
- HVN
- Previous swing levels
Conclusion
Using Weekly and Monthly VWAP transforms VWAP from a basic intraday tool into a precision swing engine. It aligns macro trend, weekly flow, and intraday execution into one clean, repeatable strategy.
If you follow the flowchart, trading plan, and checklists above, youโll have a structured, institutional-quality approach to the markets โ rooted in liquidity, structure, and true VWAP mechanics.
