In essence, as price trades away from VWAP (the blue center
line) the bands above and below it become targets. Likewise, as price reverses from the outer bands the probability of reaching VWAP increases significantly!
A Professional Approach
Here’s how the Pros use VWAP. VWAP is often seen as
the best price for any given trading day. As such, any selling pressure below VWAP is seen as a buying opportunity by professional traders. When the Pros are looking to enter the market in size, they do so BELOW VWAP.