VWAP-OB Momentum Expansion Strategy

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: Forex, Indices, Equities · Timeframes: M15, H1

Thesis

Intraday price movement is driven by institutional liquidity flows that seek Fair Value Gaps and Order Blocks; by entering momentum shifts (MACD) confirmed by these zones when price is on the correct side of the Daily VWAP, we capture the meat of daily trend expansions while using previous session extremes as logical invalidation points.

Components

• Daily Volume-Weighted Average Price (VWAP) (regime) — Filters for intraday institutional participation; ensures we only trade in the direction of the day's heavy-volume movement.
• Heikin Ashi (direction) — Determines the baseline candle trend to ignore minor noise and ensure the trend 'color' aligns with the entry.
• MACD (entry) — Captures the momentum shift required to trigger an entry after a pullback or consolidation.
• TopTrend (BBands Stop) (exit) — Provides a dynamic, volatility-adjusted exit mechanism that trails behind the price during the expansion phase.
• Daily High Low MTF (risk) — Used to define invalidation points (Stop Loss) based on significant prior-day structural levels.
• OrderBlock FVG Detector (confirmation) — Ensures the entry is supported by institutional 'smart money' footprints (OB) rather than retail FOMO.

Known failure conditions

• Price consistently violates VWAP in both directions within the same session (choppiness).
• TopTrend exit levels are hit before the MACD signal has a chance to develop meaningful profit (tight stop/whipsaw).
• OrderBlocks are frequently formed but immediately broken by subsequent price action.

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