SMA, VWAP with Buy/Sell Signals - First Signal Only

The SMA, VWAP with Buy/Sell Signals - First Signal Only indicator streamlines intraday trend following by identifying the initial high-probability momentum shifts relative to key moving averages and volume-weighted price levels.

Usage

The script is designed to identify "first-of-the-day" trend confirmations to avoid the noise of overtrading.

• Buy Signals: Occur when a bullish candle closes entirely above the SMA 20 and the VWAP. The candle's low must be strictly higher than both lines.
• Sell Signals: Occur when a bearish candle closes entirely below the SMA 20 and the VWAP. The candle's high must be strictly lower than both lines.
• Targets & Stops: Once a signal is triggered, the indicator can project an entry line, a stop-loss level (based on the previous bar's extreme), and up to three profit targets defined by point distances.

Details

This tool combines the trend-following properties of the 20-period Simple Moving Average (SMA) with the institutional benchmark of the Volume-Weighted Average Price (VWAP). By filtering for candles that do not touch these averages (air pocket/breakout), the script identifies moments of strong directional conviction. The logic includes a daily reset mechanism, ensuring that only the first qualifying long and short signals are displayed per session, which helps traders focus on the initial break of the day's range.

Settings

• SMA 20 Length: Sets the period for the Simple Moving Average.
• SMA 20 Color/Thickness: Customizes the visual appearance of the SMA line.
• VWAP Color/Thickness: Customizes the visual appearance of the VWAP line.
• Enable Targets: Toggles the visibility of the entry, stop-loss, and take-profit labels and lines.
• Target Points (1-3): Defines the distance in points from the entry price for three separate profit target levels.

FAQ

How do I use the "First Signal Only" feature effectively?

This feature is designed for intraday traders who want to capture the primary move after the market open. It resets every time a new daily bar starts, allowing for one buy and one sell setup per day.

Can I change the moving average type?

The current version utilizes a fixed Simple Moving Average (SMA) logic for its primary trend filter, though you can adjust the length in the settings.

How can I access SMA, VWAP with Buy/Sell Signals - First Signal Only?

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