Long only strategy VWAP with BB and Golden Cross EMA50/200

The Long only strategy VWAP with BB and Golden Cross EMA50/200 indicator is a trend-following system designed primarily for stock markets to identify long entry opportunities using a combination of moving average crossovers, volume-weighted average price (VWAP), and mean reversion via Bollinger Bands.

Usage

This strategy is optimized for longer timeframes, specifically 1H and above. It looks for a "Golden Cross" scenario where the trend is bullish, ensures price is above the VWAP to confirm momentum, and waits for a recent dip in the Bollinger Bands to find a value-based entry point.

An entry is triggered when:

1. The Fast EMA (50) is greater than the Slow EMA (200).
2. The current closing price is above the VWAP.
3. The price has touched or dipped below the lower Bollinger Band within the last 10 candles.
4. The current close is below the upper Bollinger Band.

The strategy also features a pyramiding mechanism, allowing it to add to an existing position if the price remains above VWAP but drops below the average position price.

Details

The strategy combines three different analytical concepts:

• Trend Confirmation: Uses the 50 and 200 EMA crossover to ensure the strategy only operates during long-term bullish regimes.
• Value Identification: Uses the VWAP to ensure the asset is trading above the volume-weighted average of the current session.
• Volatility & Mean Reversion: Utilizes Bollinger Bands to identify local oversold conditions (dips below the lower band) within the broader uptrend, aiming to "buy the dip."

Exits are managed through two primary methods:

• Take Profit: A close above the upper Bollinger Band.
• Stop Loss: A percentage-based exit (defaulted to 1%) to manage downside risk.

Settings

• Backtest Range: (From Day/Month/Year to To Day/Month/Year) Defines the period for strategy evaluation.
• Fast EMA: Sets the period for the short-term Exponential Moving Average (default 50).
• Slow EMA: Sets the period for the long-term Exponential Moving Average (default 200).
• BB SMA Length: The period for the Bollinger Band's middle line (SMA).
• BB Source: The data source used for Bollinger Band calculations (default is Close).
• StdDev: The number of standard deviations for the Bollinger Bands width.
• Strategy to use: Choose between standard Bollinger Band (BB) touches or a Percentage B (%B) calculation for entry logic.
• Stop Loss%: The percentage distance from the average entry price at which the strategy will close the position to limit losses.

FAQ

How do I use the Long only strategy VWAP with BB and Golden Cross EMA50/200?

Apply the script to a stock chart (preferably 1H or higher), and it will automatically plot the EMAs, VWAP, and Bollinger Bands while highlighting long entry and exit signals based on the integrated logic.

Can I change the moving average periods?

Yes, you can adjust the "Fast EMA" and "Slow EMA" in the settings menu to fit different market conditions or asset classes.

How can I get access to this tool?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.