A good article via smbtraining:
Now… how to use VWAP. First of all, I dont make any mechanical trades off of VWAP, but one I think you can make (haven’t really run the numbers to prove it) is to buy the first retracement to VWAP after a strongly trending stock makes a new high of the day. Reverse for shorts. (Every part of that sentence in bold is important. If you ignore any part of it (for instance, buying the second or later pullbacks) I think you could be in trouble.) You could also use this as a profit target if, for instance, you bought a stock on a fade at the lows and are wondering where to take most of your sells… VWAP is likely to be a source of natural selling pressure so I would lighten up there.
Without doing considerable backtesting there does seem to be some merit in this: I have marked in Green days which were clearly going higher and in all cases but one this approach works: