My VWAP Reversal + Pivot Points Standard

The My VWAP Reversal + Pivot Points Standard tool identifies key reversal levels by combining price action from the first candle of the day with standard pivot point calculations to facilitate a VWAP reversal strategy.

Usage

The indicator is primarily designed for the 5-minute timeframe to execute a specific reversal strategy based on overnight gaps.

• Gap Up Scenario: When the price gaps up relative to the previous day's close, the indicator marks the low of the first 5-minute candle. A close below this level, combined with a break of the VWAP (added separately), signals a potential reversal trade in the opposite direction of the gap.
• Gap Down Scenario: When the price gaps down, the indicator marks the high of the first 5-minute candle. A close above this level signals a potential reversal.
• Pivot Points: The script automatically calculates and plots the central Pivot Point (P) based on the higher timeframe (typically Daily) to provide additional context for support and resistance.

Details

This tool implements a strategy popularized by T3 Newsbeat. It focuses on the relationship between the opening range and the Volume Weighted Average Price (VWAP). By identifying the high or low of the initial candle, it establishes a "trigger" zone. The script uses request.security to fetch OHLC data from a higher timeframe to calculate standard pivot levels, which are then projected forward. It also features dynamic labels that highlight the specific price level required to initiate the reversal logic.

Settings

• Higher Timeframe: Determines the timeframe used for the Pivot Point calculations (Default: Daily). This dictates the period over which the High, Low, and Close prices are aggregated to find the pivot level.

FAQ

How do I use the reversal levels?

The indicator plots a dashed line at the low of the first bar if there was a gap up, or the high if there was a gap down. Look for a candle close across this line as a signal that the initial momentum may be shifting.

Does this include the VWAP line?

This specific script calculates the reversal targets and pivot points; users should add the standard "Volume Weighted Average Price" indicator to their chart to complete the full strategy requirements.

How can I get access to My VWAP Reversal + Pivot Points Standard?

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