Vtrender Glossary
What is Kissing VWAP?
A term for when price returns repeatedly to the VWAP, indicating mean reversion and indecision.
Repeated tests of the Volume Weighted Average Price indicate a balanced market seeking fair value. This "kissing" behavior often occurs in rotational conditions when neither buyers nor sellers can establish control. Trading strategies can exploit these patterns through mean-reversion approaches, with entries on deviations from VWAP and targets back toward this average value.