“Rejection of VWAP ” means the price tried to move through the Volume Weighted Average Price level, but failed and got pushed back in the opposite direction. In trading terms, that usually signals the level is acting as resistance if price is below it, or support if price is above it.

What it means

  • VWAP is the average price traded during the session, weighted by volume.
  • A rejection happens when price reaches VWAP, stalls, prints a failed breakout or lower high/higher low, and then reverses away from it.
  • Traders often read that as the market rejecting that price area and showing which side has control.

How to read it

  • If price is below VWAP and keeps failing to break above it, sellers are usually in control.
  • If price is above VWAP and keeps failing to break below it, buyers are usually in control.
  • The move is stronger when the rejection comes with clear volume and a clean reversal candle, rather than a weak wick-only test.

Simple example

Price rallies up to VWAP from below, touches it, then quickly drops back under it. That is a classic VWAP rejection and can be used by traders as a bearish continuation signal.

Quick caution

This is a trading concept , not a guaranteed signal. VWAP rejection works best when combined with trend context, volume, and the overall market structure, because false rejections can happen.

If you want, I can also explain the difference between VWAP rejection and VWAP reclaim in plain English.