Trading Strategies Series Part 5

VWAP combined with RSI and Super Trend

Today we are going to play with very powerful indicators for intraday trading. 
This combination is Very deadly for Intraday Trading and once you get hack of it you will be minting profits.

What is the Volume Weighted Average Price (VWAP)?
The volume weighted average price (VWAP) is a trading benchmark used by traders that gives the average price a security has traded at throughout the day, based on both volume and price. It is important because it provides traders with insight into both the trend and value of a security.

The volume weighted average price (VWAP) appears as a single line on intraday charts (1 minute, 15 minute, and so on), similar to how a moving average looks.

How to read VWAP?
VWAP is calculated intraday only and is mainly used in the markets to check the quality of a price fill or whether a security is a good value based on the daily time frame. If price is above VWAP, it may be considered as a positive trend. When price is below VWAP it may be considered as good price to sell.

Indicator Settings
1. Super Trend(11,2)
2. VWAP(default)
3. RSI(14)
4. Weighted MA(21) of RSI(14)

Strategy combining VWAP, Super trend and RSI

1) Long Entry

A long entry should be made when these conditions are met:

Candle Time Frame : 15 Min 

1. Previous candle should cross above VWAP and Positive Super trend (11,2) 
2. RSI(14) should be greater than Weighted MA(21) of RSI(14)
3. Buy only above the Previous candle close. 

Stop Loss: Low of previous candle

Profit booking Point : Safe traders can book profit when the VWAP goes below the price or can trade with 1:1 stop loss.
Risky Traders can draw a trend line from the entry point and keep trailing stop loss.

Refer the below Chart for Long Entry



2. Short Entry

A short entry should be made when these conditions are met:

Candle Time Frame : 15 Min

1. Previous candle should cross below VWAP and Negative Supertrend (11,2) 
2. RSI(14) should be lower than Weighted MA(21) of RSI(14)
3. Sell only below the Previous candle close.

Stop Loss: High of previous candle

Profit booking Point : Safe traders can book profit when the VWAP goes above the price or can trade with 1:1 stop loss.

Refer the below Chart for Long Entry




Understand this Strategy thoroughly, back test on the historic data. Try variations on 5min and 10min time frames. 
Learn and Earn with this simple and powerful Strategy.



Comments

  1. AnonymousSeptember 6, 2020 at 6:10 AM

    Thanks for this wonderful strategy. Will definitely try it out.

    ReplyDelete
  2. UnknownSeptember 10, 2020 at 6:30 PM

    Most of the calls hit SL.
    Don't know what strategies you apply.

    ReplyDelete
    Replies
    1. AnonymousOctober 11, 2020 at 11:12 AM

      Can you please tell which trades you have taken and booked loss

      Delete
  3. UnknownOctober 11, 2020 at 5:56 AM

    Hy don't msg in telegram this is the profit today or yesterday like.
    Just share screen shot of wt ever you posted in telegram paid group.

    ReplyDelete
    Replies
    1. AnonymousOctober 11, 2020 at 11:13 AM

      Sure we will start doing that as well for your convenience.

      Delete
  4. MohanOctober 12, 2020 at 10:08 AM

    If it is immediate next candle, it works. No need for wma and rsi, it seems. Am i correct?

    ReplyDelete
    Replies
    1. AnonymousOctober 17, 2020 at 10:38 PM

      It may work but but wma & rsi parameters are added to make sure that this strategy is further secured & gives out the best results

      Delete

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