VWAP+15EMA with RSI

The VWAP+15EMA with RSI tool is a trend-following strategy designed to identify high-momentum long entries by confirming price action across volume-weighted averages, exponential moving averages, and relative strength. It aims to filter out choppy markets by requiring multiple technical conditions to align before initiating a position.

Usage

The strategy triggers a long entry when the following conditions are met simultaneously:

• The closing price is above the Volume Weighted Average Price (VWAP).
• The closing price is above the 15-period Exponential Moving Average (EMA).
• The Relative Strength Index (RSI) is above a user-defined threshold (defaulted to 45).

Position management is handled through three primary mechanisms:

1. Stop Loss: A fixed percentage based on the average entry price to protect capital.
2. Take Profit: A fixed percentage target for exiting winning trades.
3. Trailing Stop: An automated exit that follows the price to lock in gains as the trade moves favorably.

Details

The script integrates three classic indicators to provide a comprehensive view of market structure:

• VWAP: Acts as a benchmark for the "fair" price of the session, adjusted for volume. The script includes customizable anchors (Session, Week, Month, etc.) and standard deviation bands.
• 15 EMA: Provides a short-term trend filter, ensuring that entries occur during active upward momentum.
• RSI: Used here as a momentum filter rather than an oscillator. By requiring the RSI to be above a specific level, the strategy ensures the price has sufficient strength to sustain a move.

Settings

Strategy settings

• Stop Loss %: The percentage distance from the entry price to place the stop loss.
• Take Profit %: The percentage distance from the entry price to place the take profit.
• Trailing Stop %: The percentage used for trailing the stop loss.

VWAP Settings

• Hide VWAP on 1D or Above: Option to toggle visibility on higher timeframes.
• Anchor Period: The time interval used to reset the VWAP calculation (e.g., Session, Week, Earnings).
• Source: The price source for VWAP calculation (default is hlc3).
• Offset: Shifts the VWAP plot forward or backward.

Standard Deviation Bands Settings

• Bands Multiplier #1: Sets the width of the standard deviation bands around the VWAP.

EMA settings

• EMA Length: The lookback period for the exponential moving average.
• EMA Source: The price source for the EMA calculation.
• EMA Offset: Shifts the EMA plot horizontally.

RSI Settings

• RSI Length: The lookback period for the RSI calculation.
• RSI Overbought Level: The threshold level the RSI must exceed for a long entry to be valid.

FAQ

How do I use the VWAP+15EMA with RSI?

Apply the script to your chart and look for long entries when the price is above the blue VWAP line and red EMA line while the RSI condition is met. Ensure your risk settings (SL/TP) align with your trading plan.

Can I change the anchor for the VWAP?

Yes, you can change the "Anchor Period" in the settings to reset the VWAP based on weekly, monthly, or even earnings cycles.

How do I access VWAP+15EMA with RSI?

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