Market Conditions
- Gap or impulse move at/after NY open causing stretch from VWAP.
- Liquidity sweep beyond prior session H/L or premarket extremes.
- No conflicting high-impact news/earnings in the next minutes.
US TECH 100 / NAS100 — New York Reversal
Fade extended moves back to VWAP after the NY cash open when an overextension shows rejection and momentum shift.
Timeframe & Session
- M1–M5 operational; 15m for context.
- Session window: 9:30–11:00 NY time.
Indicators & Setup
- VWAP (session); optional bands (±1σ/±2σ).
- Session H/L and premarket levels.
- Momentum confirmation (e.g., engulfing, break of micro-structure).
Entry Rules
- Wait for push beyond key level and quick rejection.
- Confirm momentum back toward VWAP (break of micro HH/LL).
- Enter with stop beyond the sweep extreme.
Stop & Target
- SL beyond swept high/low or last micro swing.
- TP at VWAP, then mid of prior range; scale out in parts.
- Trail on structure breaks; exit on VWAP rejection against you.
Risk & Management
- Risk per trade: 0.25–0.75% typical for indices.
- Avoid during big tech earnings or CPI/FOMC windows.
- Prefer tighter spreads around the open; watch slippage.
Backtesting Plan
- Sample at least 40–60 sessions across various conditions.
- Track distance from VWAP at entry and time-to-mean reversion.
- Measure hit-rate to VWAP and average excursion vs. risk.
- Test filters: require sweep+rejection; limit trades to first hour.
Live Execution Checklist
- VWAP plotted correctly and session start aligned.
- Valid sweep beyond key level; rejection candle confirmed.
- Orders and stops pre-defined; partial TP hotkeys ready.
Common Mistakes
- Entering before rejection confirms.
- Holding through news spikes expecting mean reversion.
- Ignoring higher-timeframe trend pushing away from VWAP.
Disclaimer
Educational content only. Trading involves significant risk. Never trade money you cannot afford to lose. Past performance does not guarantee future results.