Trading with VWAP and Price Action

Watching the following (and anticipating a retest and reject on a good Marubozu like candle before entering trades):

USDCHF:



EURUSD:




Trade after confirmation and trade only what you see and not what you think.

Now watching the following (Based on PA analysis on HTF)

BUY: EURUSD, NZDUSD, EURCAD, AUDCAD, EURAUD
SELL: GBPJPY, USDCHF, CADJPY, GBPCHF, NZDJPY

What Volume you use for forex? Tick volume?

I am currently using the "Volume" indicator that comes with MT4. I believe this is not tick volume. I use volume for additional confirmation only before entering a trade.

EURAUD BUY (Red area is stop loss zone; Yellow zone is take profit zone)

EURAUD BUY was successful.

AUDCAD BUY

Now watching the following (Based on PA analysis on HTF)

BUY: AUDCAD
SELL: GBPUSD

Exited for a small loss. Not a high probability trade.

Now watching the following (Based on PA analysis on HTF)

SELL: AUDUSD, EURUSD, NZDUSD, NZDJPY

For SELL trades on the following pairs: AUDUSD, EURUSD, NZDUSD, NZDJPY
A movement similar to the one below must occur on M15 and a good BEARISH Marubozu like candle with NO bottom wick OR a tiny bottom wick should form around points C or C1 before entering the trades. We wait for the right opportunity and do not chase the price.

Now watching the following (Based on PA analysis on HTF)

SELL: AUDUSD, EURUSD, NZDUSD, NZDJPY, EURJPY

Now watching the following (Based on PA analysis on HTF)

SELL: AUDUSD, NZDUSD, NZDJPY, EURJPY

Now watching the following (Based on PA analysis on HTF; Those pairs that have already moved quite a bit, we need to wait for them to retrace on HTF and then continue in the main trend direction)

BUY: AUDCAD, AUDNZD, CADJPY, EURAUD, EURUSD
SELL: NZDCAD, GBPCAD, NZDUSD, NZDJPY, GBPCHF, USDJPY, USDCHF

The below are screenshots from trades taken on H4 with analysis done on D1 and W1 timeframes. This approach is still evolving. The trades i had taken, where i strictly followed most of the rules, are currently going in the right direction: This has nothing to do with VWAP -I will, eventually, start a separate thread for trading on H4 with analysis on D1/W1/MN

EURCAD SELL



CADJPY BUY



NZDCAD SELL




Rules / Questions:

As mentioned earlier, i started a new thread for higher tie frame trading as it may not always be possible to make time to monitor charts on lower timeframe (M15)

Please refer to the following for HTF trading. This can be used to determine the direction of the trade and then use VWAP / 200 EMA on M15 to trade.

https://www.forexfactory.com/thread/...g-price-action

As and when i find time to trade on M15, i will update the trades here.

Hi there SMMTRADER, I like the way you have build the strategy. I took a trade based on your strategy too, please have a look if everything is okay.

https://charts.mql5.com/28/441/golds...brokers-4h.png

https://charts.mql5.com/28/442/golds...de-brokers.png

https://charts.mql5.com/28/442/golds...de-brokers.png

H4 has the set up we are looking for, break of trendline, retest of trendline, bounce and break of 200ema. On m5 I was actually waiting for the price to come up to the top PAA zone but it gave signal (candle stick) on the bottom PAA zone also on m15 it was like rejection from 200ema.
Anywhere was it all aligned? Did I do any mistake?

Hi Smmtrader,

I have been researching and working on VWAP all this time and also testing and practicing. I have found a way to scan for trades using your indicator VWAP and even is possible to get alerts, in fact it is very simple and I would like to share this info. Also I have a request, is there any possible that you can add to your VWAP indicator a Custom Moving Averages indicator like the one that comes inside MT4?. Having a moving average line like the Linear Weighted will allow us to find a better intersection between price and the VWAP line, reducing the noise and false signals generated by several candles getting close to the VWAP line! The way to get the alerts keeping this thread with more action is using an indicator called Pin One, it is free indicator made by Jagzu a great contributor in FF. This indicator will read your VWAP buffer 0 and will compare it against another value, in this moment we only have Price from the charts, this indicator will be scanning the 28 pairs looking for the cross moment, here is where if we can add to your VWAP indicator a second buffer (1) for the Linear Weighted (or any other, like simple, exponential, etc) moving average, then we can replace Price in the settings by buffer B (1). I hope this information could be helpful to everyone.

Hi Thakri, Please see below (Mpre recently i found a lot of value in drawing the fresh, strong Demand and Supply zones near the price and referencing them before entering a trade)

Demand / Supply:


M15:
H4:


Based on the two charts above, it looks fine to take a SELL trade after the candle pointed to by the arrow had closed. Hope this helps.

Thank you for checking the charts for me...few things I would like to clear please

Do we have to wait till we see 4h break, retest and reject and then only check m15 chart? Can we not take a trade if we only see the set up on m15 but not in h4?

Do take a trade only if we see Marubozu candle with volume bars touching 200ema? Can we not take a trade if we see Marubozu candle but no signal on volume or we see high volume price, price moving in our direction but no marubozu candle? Sometimes I see the Candle also with high volume but lower than the previous bar, does that still counts for entry?

I was learning smart money kind of trading but I it was not clicking. I couldn't really figure it out from where the price might return. This trading strategy of yours is exactly that but with set simple rules which helps me personally. I have been taking trades this way and it is certainly helping.