VWAP + Triple Top: The Sneaky Strategy That Outsmarted the Market

The Setup Nobody Talks About (But Should)

Imagine you’re at a party. Everyone’s chasing the trendiest new trading strategy like it’s the last slice of pizza. Meanwhile, a few seasoned traders are chilling in the corner, quietly racking up wins using a combo so slick it might as well wear shades indoors: the “VWAP” + “Triple Top” strategy.

This article spills the tea on this underutilized power duo. If you’ve been sleeping on the synergy between VWAP (Volume Weighted Average Price) and the Triple Top pattern, it’s like forgetting your umbrella and sunscreen—totally unprepared for what’s coming next.

Main Keywords: VWAP + Triple Top Synonyms: VWAP strategy with triple top, triple top breakout VWAP, volume-weighted triple top

The Hidden Patterns That Drive the Market

Let’s start with the obvious no one wants to admit: most traders misuse VWAP. They slap it on their charts and call it a day. But VWAP is more than a fair value line—it’s a psychological battleground. Pair that with a Triple Top pattern, and you’re suddenly seeing the market like Neo sees the Matrix.

Here’s how the Triple Top behaves: the price makes three failed attempts to break a resistance level. Retail traders call it quits after attempt #2. But the pros? They patiently wait for that third strike—and the real test begins.

When the price breaks the VWAP during or after the third top, something big is brewing. It’s like the market finally whispering, “Okay, I’ll show you my hand.”

Underground VWAP + Triple Top Signal Checklist

1. Identify a well-formed Triple Top with clean horizontal resistance.
2. Ensure the VWAP is flat or trending slightly downward during the third top.
3. Wait for a high-volume rejection from the third top and a close below VWAP.
4. Confirm momentum with volume divergence (volume drops while price pushes up into the top).
5. Pull the trigger only after candle confirmation below VWAP.

Stat to Know: According to a 2023 study by QuantInsti, VWAP-based entries during breakdowns in reversal patterns increased risk-adjusted return by 18.7% over non-VWAP setups.

Why Most Traders Get It Wrong (And How You Can Avoid It)

Many traders panic when price breaks above VWAP near the third top. But that’s just bait. Like a magician pulling a rabbit out of a hat, the market loves misdirection. Professional traders watch for false breakouts above VWAP to trap eager bulls, then fade the move into oblivion.

Here’s the kicker:

• The best Triple Top rejections occur when VWAP acts as a magnet.
• Price action hovers, hesitates, and then dumps below it with volume confirmation.

You don’t chase the breakout. You wait for VWAP to scream “confirmation.” That moment? It’s cleaner than a fresh haircut before date night.

Case Study: GBP/JPY Triple Top Trap (Q4 2024) Triple Top on the 1-hour chart. VWAP was flat. Retail bought the breakout. Price wicked above resistance, then fell hard, slicing VWAP like a knife through sashimi. Outcome? 120+ pip drop. Traders using our checklist? Smiling all the way to the broker.

The Forgotten Strategy That Outsmarted the Pros

The real MVP move? Anchoring VWAP to the start of the Triple Top structure. This niche tactic lets you treat VWAP not just as a day level, but as a dynamic benchmark for the whole formation.

Steps for Anchored VWAP + Triple Top Setup:

1. Once the first peak forms, anchor VWAP to that candle.
2. Let the VWAP trail the price during the second and third peaks.
3. Look for rejection candles below anchored VWAP on the third peak.
4. Wait for a close below both anchored VWAP and live VWAP.
5. Enter with confirmation; set stop just above the top.

This technique is criminally underused. It’s like having night-vision goggles in a dark market.

Expert Quote:

“VWAP is the market’s truth serum. When paired with multi-touch resistance like the triple top, it exposes institutional intent.” — Linda Raschke, veteran trader and author

How to Predict Market Moves with Precision

To get sniper-level accuracy, you must factor in volume behavior. Volume confirms narrative.

Volume Tells You:

• Whether bulls are exhausted after the third peak
• If smart money is offloading into retail buying pressure
• Whether VWAP is defending the move or exposing a trap

Elite Trick: Combine VWAP + OBV (On Balance Volume)

• OBV divergence during the third top while price hugs VWAP = pure gold.
• Volume failing to increase on breakouts? Warning sign.
• OBV dropping while price flatlines near VWAP = bearish distribution.

According to data from TradingView Labs (2024), setups with OBV divergence and VWAP rejection produced 72% win rates on the 15-minute chart.

Ninja Tactics: Exploiting Liquidity Gaps Around VWAP

Ever notice how price often rips or dips hard after hovering around VWAP? That’s because VWAP attracts liquidity—it’s where big players make moves.

Step-by-Step Liquidity Exploitation Strategy:

1. Watch for a squeeze above the third top into VWAP.
2. Check for low volume confirmation.
3. Enter short once price closes below VWAP on bearish engulfing candle.
4. Set target at previous swing low.
5. Use a trailing stop once price moves halfway to the target.

This tactic turns retail FOMO into your entry fuel.

The One Simple Trick That Can Change Your Trading Mindset

Treat VWAP like a lie detector. If price action doesn’t behave in line with volume around VWAP, assume the breakout is a bluff.

Mindset Shift:

Instead of predicting breakouts, observe VWAP rejections.

• You’re not guessing.
• You’re waiting.
• You’re watching how price responds to VWAP like a lie being tested under pressure.

Think like a detective, not a gambler.

Bonus Resource: Where Pros Go to Level Up

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Key Takeaways: The VWAP + Triple Top Blueprint

• Use VWAP to confirm or deny Triple Top validity
• Anchor VWAP to peak #1 for better structure tracking
• Look for volume divergence and OBV drop
• Fade fakeouts above VWAP into high-reward entries
• Focus on market reactions, not market predictions

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Image Credits: Cover image at the top is AI-generated