Price and Volume Heatmap Signals with EMA and VWAP Filters

Summary

This strategy builds a heatmap around the current price by dividing a configurable price range into levels and totaling past volume classified as buying or selling at each level. It displays those totals with color coded labels or chart shapes and plots the current price. Its trade signals use EMA, VWAP, and a moving average of volume: buying requires price and candle conditions above the averages with elevated volume, while selling uses bearish conditions or two consecutive down candles. The description says duplicate signals are limited, and the published example applies the strategy to BTC/USDT futures. No backtest performance results are reported.

The heatmap is presented as a visual aid alongside the signal rules, not as evidence of predictive value. The document warns that results depend on the price range and lookback settings, EMA and VWAP can lag, and choppy markets may produce false signals. It also notes that the strategy lacks stop loss and position sizing controls. Suggested extensions include multi timeframe confirmation, additional indicators, explicit risk controls, and parameter testing; their effectiveness is not established.

Key ideas

• The heatmap bins past candle volume into price levels around the current price and displays cumulative buy and sell totals.
• Trade signals combine price position relative to EMA and VWAP with volume conditions.
• Two consecutive down candles can also trigger a sell signal.
• The document reports no performance results and warns of false signals in choppy markets and lagging indicators.
• Stop loss and position sizing controls are absent from the described strategy.

Tags

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