This strategy combines a moving average with a volume‑weighted moving average (VWMA). When price trades above the VWMA, it suggests buyers are dominant. A breakout occurs when price crosses the VWMA from the opposite side.
Trades align with the VWMA direction and use the simple moving average as a higher‑level trend filter. Exits occur when price reverses relative to the moving average.
The goal is to capture breakouts supported by volume.
- Entry Criteria: Price above or below VWMA with MA confirmation.
- Long/Short: Both directions.
- Exit Criteria: Price crosses MA in opposite direction or stop.
- Stops: Yes.
- Default Values:
- MAPeriod = 20
- VWAPPeriod = 20
- CandleType = TimeSpan.FromMinutes(5)
- Filters:
- Category: Breakout
- Direction: Both
- Indicators: VWMA, MA
- Stops: Yes
- Complexity: Intermediate
- Timeframe: Intraday
- Seasonality: No
- Neural Networks: No
- Divergence: No
- Risk Level: Medium