VWAP

How Draconic reads it

VWAP is the price the largest participants benchmark their execution against, which is precisely why it behaves as a magnet rather than a line drawn on a chart. Institutional algorithms are instructed to fill at or better than VWAP, so their order flow naturally gravitates toward it; the level reacts because real money is actively working around it, not because of chart geometry. Price trading above the session VWAP means buyers are in control of the day; price below it means sellers are. The standard-deviation bands around VWAP frame how stretched a move is: a push to the upper band in a balanced session is a mean-reversion candidate back toward VWAP, while a trending session rides one band and treats VWAP as support on every pullback. Session VWAP resets each day; anchored VWAP measured from a significant high, low, or event tracks control from that specific origin. When VWAP coincides with a volume-profile point of control or an order block, the benchmark and the structure reinforce each other.