OPEN-SOURCE SCRIPT
VWAP + Fibo Dev Extensions Strategy
Based on my VWAP + Fibo deviations indicator, I tested some strategies to see if the indicator can be profitable; and I got it !
This strategy uses:
First, the 2 bands are plotted : +1.618/+2.618 painted in red and -1.618/-2.618 painted in lime.
Then, we wait for the deviation value to reach at least 150 (see thumbnail) to avoid littles moves when the gaps between bands are too short.
Entry long position :
Exit long position :
Entry short position :
Exit short position :
Notes :
This strategy uses:
- H1 timeframe
- Weekly VWAP
- +1.618 / +2.618 / -1.618 / -2.618 Deviations Extensions to create 2 bands
- The value of the deviation
First, the 2 bands are plotted : +1.618/+2.618 painted in red and -1.618/-2.618 painted in lime.
Then, we wait for the deviation value to reach at least 150 (see thumbnail) to avoid littles moves when the gaps between bands are too short.
Entry long position :
- first candle must crossunder the -1.618 level and low have to stay over the -2.618
- low of the second one must stay in the lime band
- enter the third one if the deviation value is over limit (150)
Exit long position :
- TP : when a high crossover VWAP
- SL : when a low crossunder -2.618
Entry short position :
- first candle must crossover the +1.618 level and high have to stay under the +2.618
- high of the second one must stay in the red band
- enter the third one if the deviation value is over limit (150)
Exit short position :
- TP : when a low crossunder VWAP
- SL : when a high crossover +2.618
Notes :
- this strategy uses pyramiding (5), be careful and calculate your risk management
- the comission value is set to 0.08% to include slippages when entering a trade because of market orders
- This strategy is not an advice to invest, make your own decisions.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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