#DayTradingStrategy

🔍 Day Trading Strategy: The VWAP Pullback

Strategy Overview: This strategy uses the Volume Weighted Average Price (VWAP) as a key indicator to trade intraday pullbacks in trending markets.

Steps:

1. Identify the Trend: Use the first 30 minutes of trading to spot upward or downward momentum.

2. Wait for a Pullback: Watch for the price to pull back toward the VWAP line.

3. Enter the Trade:

In an uptrend: Buy when price pulls back to VWAP and shows a bounce.

In a downtrend: Short when price pulls back to VWAP and rejects.

4. Set Stop-Loss: Just below VWAP (for longs) or above it (for shorts).

5. Take Profit: Use recent highs/lows or a fixed risk-to-reward ratio (like 1:2).

Best For: Liquid stocks or indices with strong volume.

Pro Tip: Avoid trading around major news or earnings releases.