Pivot and VWAP Confluence Reversal Entry Strategy

Summary

This Pine strategy combines daily pivot levels with an intraday VWAP to identify potential reversals. A long signal occurs when a bar’s low moves below both a pivot level and VWAP, then closes above both. Short signals reverse those conditions: the high must exceed both references and the close must finish below them. The script calculates the central pivot and five support and resistance levels from the previous day’s prices, and accumulates a session VWAP using typical price and volume.

Trading is restricted to a stated morning-to-early-afternoon window, with a stated cap of two signals per day. The supplied excerpt ends partway through the short-signal logic, so it does not show the full order handling, exits, or position sizing details beyond the strategy declaration. No performance results or validation are provided. The method therefore describes entry conditions and filters, but the excerpt alone is insufficient to assess risk management or profitability.

Key ideas

• Daily pivot levels are calculated from the previous session’s high, low, and close.
• VWAP is accumulated from typical price and volume during the market session.
• Long entries require a move below both a pivot and VWAP followed by a close above both.
• Short entries use the reverse relationship between price, pivot levels, and VWAP.
• The strategy limits its trading window and the number of daily signals.

Tags

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