VWAP-Delta Fade / Reversal (Webhook Alerts V1)

⚖️ VWAP Delta Fade / Reversal Strategy – 1-Minute Chart (GC VWAP Delta Fade)

⚙️ Purpose
• Fade overextended price moves away from VWAP (Volume-Weighted Average Price).
• Capture mean reversion trades as price snaps back toward equilibrium.
• Ideal for scalp-style trades or early-trend reversals after a strong imbalance.
• Built for futures instruments (MNQ, NQ, ES, MES, etc.) with clear intraday volume profiles.

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🕒 Timeframe & Session
• Chart: 1-Minute (occasionally confirm with 5-Minute for structure).
• Trading Window:
• Active between 9:45 AM – 3:45 PM EST (avoid open/close whipsaws).
• Skip major news windows (10:00 AM and 2:00 PM).

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🧩 Setup
1. Add VWAP to your chart with standard session reset (each day).
2. Enable Delta or Cumulative Delta indicator — helps visualize aggressive buyers/sellers.
3. Identify conditions where price extends far from VWAP (typically 1.5–2.0 standard deviations).
4. Look for momentum exhaustion — Delta diverging from price, volume tapering off.
5. Prepare for entry as price stalls and begins reverting toward VWAP.

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📈 Entry Rules

LONG Fade (buy reversal):
• Price is below VWAP by a large margin.
• Delta shows seller exhaustion (less negative Delta while price still dropping).
• Candle closes bullish showing rejection wicks or engulfing strength.
• Enter long with target toward VWAP.

SHORT Fade (sell reversal):
• Price is above VWAP significantly.
• Delta shows buyer exhaustion (less positive Delta while price still rising).
• Candle closes bearish showing upper rejection or engulfing weakness.
• Enter short with target back toward VWAP.

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🎯 Trade Management
• Position Size: 1–10 contracts depending on volatility.
• Take Profit (TP): +110 ticks default.
• Stop Loss (SL): −128 ticks default.
• Target Zone: VWAP reversion — partials can be taken once VWAP is tagged.
• Risk/Reward Ratio: ~1:1 by design (mean-reversion fade).
• Optional trailing stop: Enable after +60 ticks to protect partial profits.

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🧠 Best Practices
• Only trade clear extremes — if price hovers around VWAP, skip it.
• Use Delta divergence for confirmation, not standalone signals.
• Avoid entries directly before high-impact news.
• Prefer trades with support/resistance confluence near the VWAP extremes.
• Don’t fade strong trending sessions (where VWAP is one-sided with EMAs stacked).
• Wait for confirmation candle close before entry — avoid trying to catch the exact
top/bottom.