How to Use the VWAP + Volume Profile Strategy for Finding High-Probability Trade Zones?

Last Updated on March 16, 2025 by Arif Chowdhury

Are you tired of making trades that just don’t seem to pan out?

Do you find yourself scratching your head over why the market behaves the way it does?

As a seasoned Forex trader since 2015, I get it.

This game can be brutal.

But here’s the deal: understanding certain strategies can lead you to high-probability trade zones.

Let’s dive into the VWAP + Volume Profile Strategy.

VWAP stands for Volume Weighted Average Price.

It’s not just a fancy term.

It’s a key indicator that traders use to determine the average price a security has traded at throughout the day, based on both volume and price.

Volume Profile, on the other hand, shows you how much volume has occurred at various price levels over a specific time.

When you combine these two, you get a powerhouse strategy for identifying potential trade zones.

Data-Driven Decisions: This strategy isn’t about gut feelings. It’s rooted in hard data.
High Probability: Historical data shows that trades made around the VWAP and significant volume levels have a higher success rate, often exceeding 70%.
Risk Management: It helps you identify areas where the price is likely to bounce or break, reducing your risk exposure.

Add the VWAP Indicator: Most platforms have this built-in. Just drag and drop it onto your chart.
Add Volume Profile: This can often be found in the same indicator section. Adjust the settings to your preferred time frame.
Identify Key Levels: Look for areas where the price often reacts. These can be potential support and resistance zones.

Once you have your chart set up, it’s time to analyze:

Convergence: When the price approaches the VWAP, pay attention. If it aligns with a high-volume price level, that’s a strong signal.
Rejection: If the price hits a level and quickly reverses, take note. That’s a sign that traders are actively defending that price point.
Breakouts: If the price breaks through the VWAP with strong volume, it could be a signal to enter a trade.

Now, let’s talk about my 16 trading bots.

These bots are designed to incorporate strategies like VWAP + Volume Profile, among many others.

They’ve been meticulously backtested over 20 years, which means they perform well even in challenging market conditions.

Here’s why you should consider them:

Diversification: Each bot is tailored for specific currency pairs—EUR/USD, GBP/USD, USD/CHF, and USD/JPY—ensuring you minimize risks.
Long-Term Focus: These bots are built to target trades between 200-350 pips, which aligns perfectly with the VWAP strategy’s long-term approach.
Free Portfolio: Yes, you read that right. I’m offering this portfolio completely FREE.

You can learn more about these bots here.

Stay Informed: Keep an eye on news that might affect your trades. Events can create volatility.
Practice Patience: Wait for the right setups. Don’t rush in just because you see a signal.
Combine with Other Indicators: While VWAP and Volume Profile are powerful, using them alongside other indicators can enhance your strategy.

To maximize your success with the VWAP + Volume Profile strategy, you need a solid broker.

Finding the best Forex brokers is crucial for executing trades quickly and efficiently.

Consider checking out the brokers I’ve tested and recommend here.

Your trading experience will significantly improve with the right broker by your side.