The VWAP + Triple Top Blueprint: The Hidden Power Combo That Pros Won’t Tell You

Picture this: You just nailed a perfect trade using the VWAP and spotted a textbook triple top formation. Your P/L is glowing, and you feel like the Forex market’s Neo dodging bullets. Then, reality check—you remember last week when you mistook a false breakout for a triple top and watched your account melt faster than ice cream on a July sidewalk.

Welcome to the world of VWAP and triple tops—a power combo that can turn you into a sniper in the Forex trenches when used correctly. But here’s the twist: most traders misuse both, leading to frustration, confusion, and empty accounts.

Today, we break down this overlooked duo and unlock next-level strategies that institutional traders guard like their grandma’s secret cookie recipe.

Why VWAP + Triple Top Is a Trader’s Cheat Code (If You Know How to Use It)

VWAP: The Market’s Lie Detector

Volume Weighted Average Price (VWAP) isn’t just some fancy line on your chart—it’s what big money watches. When price hovers above VWAP, buyers are flexing; below it, sellers are throwing punches.

But here’s what they don’t tell you: Institutions use VWAP to gauge whether their massive positions are being filled at favorable prices. You? You can use it to piggyback on their moves.

Triple Top: The Psychological Glass Ceiling

The triple top pattern is like watching someone hit their head on a low door frame—again and again. Price tests resistance three times, fails, and sellers swoop in like vultures.

But this isn’t just a shape on a chart. It’s crowd psychology screaming, “We tried three times, and we’re out of juice!”.

Combine these tools, and you get an advanced sniper scope that can help you spot exhaustion and ride institutional moves.

The Hidden Pattern Institutions Exploit

Institutions aren’t drawing cartoon patterns on their Bloomberg terminals. They’re blending VWAP with market structure. Here’s a little-known secret:

• The False Triple Top Trap: Institutions often engineer a fake breakout above a triple top, lure retail traders in, then dump their positions.
• VWAP Confirms the Bluff: When price spikes above a triple top but VWAP stays below, institutions are likely offloading, not buying.

Insider Tip: VWAP Divergence Confirmation

When price tests a resistance zone for the third time (triple top) and breaks slightly above it, check VWAP:

• Breakout + Above VWAP = Potential True Breakout
• Breakout + Below VWAP = Likely Fakeout (Institutional Exit Liquidity Grab)

This divergence is the institutional fingerprint. Spot it, and you’ll stop falling for their fakeouts.

Step-by-Step: The VWAP + Triple Top Master Plan

1. Identify a Triple Top Formation:

• Price tests resistance level three times with similar peaks.
• Volume typically decreases on each attempt (a subtle exhaustion signal).

2. Plot VWAP on Your Chart:

• Use the session VWAP for intraday trades.
• Anchored VWAP can work better for swing positions (e.g., anchoring to a key news event).

3. Observe the Third Test:

• Watch for price to push slightly above the resistance level.
• Simultaneously check VWAP positioning.

4. Check for Divergence:

• Price breaking resistance but trading below VWAP = Warning Signal.
• Price above resistance AND above VWAP = More likely genuine breakout.

5. Execute Like a Pro:

• Short aggressively if price fakes out above the triple top while VWAP is below.
• Go long only when price breaks convincingly and holds above VWAP.

6. Stop Loss & Risk Management:

• For short trades: Above the fake breakout high.
• For long trades: Below VWAP with breathing room.

Real-World Application: When VWAP Saved Me From a $5,000 Disaster

Last year, during a EUR/USD news-heavy day, I spotted what seemed like a perfect triple top. Retail traders flooded in like it was Black Friday. But VWAP whispered, “Hold up, cowboy.”

Price breached resistance, but VWAP was far below. My gut said long; my brain (and VWAP) said short. I listened to VWAP. Within an hour, the pair collapsed 70 pips as institutional orders flooded out.

That divergence saved me from a $5,000 loss. Moral? VWAP is not optional; it’s survival gear.

Advanced Ninja Tactics: What 95% of Traders Miss

The VWAP-Squeeze Exit Play:

When price breaks a triple top, but hugs VWAP without pulling away, it often precedes a squeeze. Institutions are building positions quietly.

• Tactic: If breakout aligns with VWAP but price stalls, don’t panic. Scale in gradually. The squeeze often triggers a violent breakout once liquidity thins.

VWAP to Identify Exhaustion Wicks:

Ever seen a candle spike, then get smacked down instantly? Institutions sweeping liquidity.

• Tactic: If wicks form above a triple top but price can’t hold VWAP, short with conviction. You just spotted a liquidity grab.

Data & Expert Backing: Why This Works

According to the Bank for International Settlements (BIS), institutional traders account for over 75% of daily Forex volume (source). Their behavior shapes patterns like triple tops and makes VWAP critical.

Paul Robinson, DailyFX Strategist: “VWAP is crucial for understanding institutional footprints; ignoring it means trading blind.” (source)

Linda Raschke, Trading Legend: “Patterns like triple tops only work with context. Volume and positioning tools like VWAP are the key.” (source)

Key Takeaways for Tactical Mastery:

• VWAP reveals institutional sentiment; triple tops expose crowd exhaustion.
• Fakeouts above triple tops are often institutional traps.
• VWAP divergence can confirm fakeouts vs. real breakouts.
• Wicks above resistance + VWAP lag = Institutional liquidity grab.

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