VWAP Pullback Scalping with Zero-Lag Trend and ATR Exits

Summary

This scalping strategy seeks pullback entries when price remains aligned with both a zero-lag exponential moving average and VWAP. For longs, price must be above both references and the bar must retrace to VWAP, its lower deviation band, or the zero-lag line; shorts use the mirrored conditions. A directional candle and close confirmation trigger entry. The script also calculates volume expansion and VWAP deviation bands, though neither appears in the actual entry conditions.

Initial stop distance is set from ATR, and the profit target uses a configurable reward-to-risk multiple. The strategy closes an opposing position before entering a new signal, and a state variable suppresses repeated consecutive signals in the same direction. The page describes the setup as a trend-aligned pullback approach but supplies no performance results, market or timeframe guidance, or evidence that the settings generalize. Its entries require confirmed bars, and any assessment would need to account for trading costs, execution, and the instrument and timeframe used.

Key ideas

• Long and short bias requires price to be on the matching side of both the zero-lag average and VWAP.
• Entries require a retracement to VWAP, a VWAP band, or the zero-lag average, followed by directional candle confirmation.
• ATR sets the initial stop distance, and a reward-to-risk multiple determines the target.
• The script tracks the last signal direction to prevent repeated consecutive entries on that side.
• Volume expansion and deviation bands are calculated for context but do not gate the stated entry triggers.

Tags

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