Generating VWAP Signals from Fibonacci Retracement Levels

Summary

The article describes TrendMap, a signal-generation framework that combines swing-based Fibonacci retracement levels with VWAP. It calculates a selected bar range’s high and low, derives retracement levels, and compares VWAP with the midpoint of that range: VWAP below the midpoint produces a buy signal, while VWAP above it produces a sell signal. The described rules do not specify a neutral condition for equality.

An MQL5 expert advisor sends symbol, timeframe, price, swing, VWAP, and Fibonacci data to a local Python server over HTTP. The server applies the comparison, returns a signal, logs activity, and can plot prices, VWAP, and retracement levels; the advisor displays returned signals on its chart but is described as not executing trades. The article explains implementation flow and visual output, but provides no backtest, market results, or evidence that combining these indicators improves signal quality. Fibonacci and VWAP levels should therefore be understood as the system’s chosen heuristics, not validated predictive findings.

Key ideas

• The framework derives Fibonacci retracement levels from a chosen bar range’s swing high and low.
• It generates a buy signal when VWAP is below the 50% retracement midpoint and a sell signal when VWAP is above it.
• An MQL5 advisor sends market inputs to a Python server, which evaluates the rule and returns a signal.
• Chart arrows and plots provide visual displays, while the described advisor does not place trades.
• The article describes implementation but supplies no backtest evidence for the rule’s profitability or reliability.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.