Linear VWAP Institutional Pullback

Family: pullback · Regime: trending · Complexity: medium · Asset classes: Equities, FX (Majors), Indices · Timeframes: M5, M15

Thesis

Intraday markets are driven by institutional volume (VWAP) and trend persistence (LinReg). This strategy hypothesizes that momentum pullbacks (Stochastic) occurring near institutional footprints (Order Blocks) represent high-probability continuation points as markets seek liquidity before resuming the session trend.

Components

• Linear Regression (LINREG) (regime) — Establishes the primary trend regime by fitting price to a linear model; slope indicates direction and strength.
• Daily Volume-Weighted Average Price (VWAP) (direction) — Filters trades to ensure entries occur in the direction of the volume-weighted institutional average for the session.
• Stochastic Oscillator (entry) — Identifies short-term momentum pullbacks (oversold/overbought) within the established trend.
• Restu Kaioh Scalping Indicator (exit) — Converts momentum into a binary state to trigger exits when price reaches the opposite momentum extreme.
• Order Block & FVG Detector (risk) — Locates institutional liquidity zones to set hard stop losses and calculate risk-adjusted position sizes.

Known failure conditions

• VWAP is flat/horizontal for more than 4 hours, indicating a non-directional market.
• Price consistently violates Order Blocks without reversing, suggesting institutional presence is absent or shifting.
• Stochastic %K remains pegged above 80 or below 20 for extended periods during trend exhaustion.

Explore the full interactive blueprint, parameter ranges and evidence on WOBR StrategyVerse, or generate this strategy as an MT4/MT5 Expert Advisor with QuantMogul AI Engine.