VWAP + MACD / Owl of Profit

VWAP + MACD Strategy

This strategy combines Volume Weighted Average Price (VWAP) with the Moving Average Convergence Divergence (MACD) indicator to identify momentum-based entry and exit signals aligned with price levels.

Features:
VWAP (Volume Weighted Average Price):

A benchmark price level that accounts for trading volume.
Helps identify if the price is trading above or below a key average.
MACD (Moving Average Convergence Divergence):

Measures the relationship between two EMAs.
Fast Length: 12 (default).
Slow Length: 26 (default).
Signal Smoothing: 9 (default).
MACD Histogram highlights the difference between the MACD Line and the Signal Line.
Entry and Exit Logic:
Long Condition:

MACD Line crosses above the Signal Line.
Price is trading above VWAP.
Short Condition:

MACD Line crosses below the Signal Line.
Price is trading below VWAP.
Exit Long:

MACD Line crosses below the Signal Line.
OR price crosses below VWAP.
Exit Short:

MACD Line crosses above the Signal Line.
OR price crosses above VWAP.
Visualization:
VWAP:

Plotted as an orange line on the price chart.
MACD:

MACD Line in blue, Signal Line in red.
Histogram indicates positive (green) or negative (red) momentum.
Zero Line:

A reference line at 0 for MACD analysis.
Customization:
Adjustable MACD parameters and VWAP can be tailored to fit specific market conditions or timeframes.
This strategy is ideal for traders who want to combine momentum with volume-weighted trend direction for more precise entries and exits.

Visit my website for more tools and strategies: bybitindicators.com

Happy trading!