The VWAP Williams %R strategy focuses on intraday reversion around the Volume Weighted Average Price. It observes when price drifts away from VWAP while the Williams %R oscillator reaches oversold or overbought territory. The assumption is that extreme readings near VWAP often lead to a snapback toward the mean.
When the oscillator drops below -80 and price trades under VWAP, the setup implies selling pressure is fading and a rebound may follow. Conversely, a reading above -20 while price is positioned above VWAP warns that buyers are exhausted and a pullback is likely. The strategy opens trades in the direction of a potential return to VWAP and watches for that move to complete.
This approach fits active intraday traders who prefer frequent mean reversion opportunities. A small stop‑loss relative to VWAP keeps risk contained while still allowing enough room for price to fluctuate before reversing.
Entry Criteria:
Long: Price < VWAP && Williams %R < -80 (oversold below VWAP)
Short: Price > VWAP && Williams %R > -20 (overbought above VWAP)
[]Long/Short: Both sides.
[]Exit Criteria:
Long: Exit long position when price breaks above VWAP
Short: Exit short position when price breaks below VWAP
[]Stops: Yes.
[]Default Values:
WilliamsRPeriod = 14
StopLossPercent = 2m
CandleType = TimeSpan.FromMinutes(5)
[*]Filters:
Category: Mixed
Direction: Both
Indicators: VWAP Williams R
Stops: Yes
Complexity: Intermediate
Timeframe: Intraday
Seasonality: No
Neural networks: No
Divergence: No
Risk Level: Medium