Options Momentum Bias Signals with EMA, VWAP, and Volume Filters

Summary

This script creates directional CALL and PUT signals from price and indicator conditions. A bullish setup requires price above VWAP and a trend EMA, a faster EMA above a slower EMA, elevated volume, a recent pullback to the fast EMA, and a bullish close above the prior bar’s high while the fast EMA rises. The bearish rules mirror those conditions. Optional regular-session filtering and a signal cooldown are included, and entries are limited to nonmatching existing positions.

Exits use ATR-based stop and target distances, with additional closes if price crosses VWAP against the position. The script sets position sizing as a percentage of equity and disables pyramiding. Despite the options-oriented title and CALL/PUT labels, the visible code submits long and short strategy entries on the chart instrument; it does not show options contract selection or options-specific pricing. The supplied text is a script excerpt, ending during the plotting section, and contains no backtest results or evidence of profitability.

Key ideas

• Bullish and bearish signals require aligned price, EMA, VWAP, volume, pullback, and candle-break conditions.
• A regular-session filter and per-direction cooldown can constrain signal timing.
• ATR multiples define initial stop and target levels, while a VWAP cross can trigger an early close.
• The script uses percentage-of-equity sizing and disables pyramiding.
• The visible code trades the chart instrument and provides no options-specific contract logic or performance results.

Tags

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