🚨 Liquidations + VWAP: How Not to Chase a Late Impulse

A screener does not give you an entry. It shows you where the market is already overextended.

One of the most useful signals is a liquidation spike. Price moves fast, traders get wiped out, and late participants mistake that flush for the start of a fresh move. In many cases, the entry is already gone by then.

After the screener signal, open the chart and add VWAP. It shows whether the market is holding the impulse or whether the move was just a short-lived liquidation burst.

If, after an upside liquidation cascade, price fails to hold above VWAP and quickly moves back below it, buyers did not take control. The impulse was emotional, not sustainable.

The same logic works on the downside. If there is a strong liquidation cascade lower, but price quickly reclaims VWAP and holds above it, sellers are no longer in control. Shorting after the panic at that point is usually late.

After the signal, watch 3 things:

— whether price holds one side of VWAP;

— whether there is a return to VWAP and a reaction from it;

— whether the move continues after the retest or loses momentum.

The crowd makes the same mistake again and again: it treats a liquidation flush as a sustainable trend. The screener shows the overload. VWAP shows whether the move still has fuel.

You can test this screener on a Crypto-Resources for free and see where liquidations actually lead to continuation and where the market is simply finishing off late traders.