How is the VWAP indicator used in the range breakout strategy in day trading?

Thanks Curtis for the question.

The VWAP locates a stock’s true average by considering the transaction volume at a particular price as opposed to its closing value. The fact that it’s an intraday signal explains why you won’t find it in weekly and daily charts.
You should wait for the security to test the VWAP’s downside and find the stock closing over it. The goal is to buy above the candle high that closed over the VWAP. While it suits conservative traders, this approach bears risk given that you will be several percentage points from the low.
This strategy also applies to pullback setups. Here, the investor tracks the security’s value as it nears the VWAP. In addition to the VWAP break, participants check the tape for a spike in order sizes and speeds. Considering the neutrality of this zone, avoid breakouts happening far from the VWAP.  Likewise, stay away from range breakout trades if values gap up or down to prevent whipsaws.