RSI + VWAP Day Trading Strategy is one of the strongest methods for identifying entry and exit points, as it combines the strength of momentum (RSI) and the true price trend strength of institutions (VWAP).

Here is a summary of the method in simple and clear steps:

🟩 Long Trade

🔸 Entry:

When the price is below VWAP and then breaks above it with a clear increase in momentum, coinciding with RSI above the 60 level… this is where buying power starts to enter.

🔸 Stop Loss:

Below the last nearby low or directly below the VWAP line.

🔸 Exit:

When the price starts to deviate excessively from VWAP and RSI reaches exhaustion areas near 60–70.

🟥 Short Trade

🔸 Entry:

When the price is above VWAP and then breaks below it, and momentum starts to weaken, coinciding with RSI dropping below the 40 level… a strong entry signal for short.

🔸 Stop Loss:

Above the last peak or directly above the VWAP line.

🔸 Exit:

When the price moves too far from VWAP and RSI reaches overbought areas near 40–30.

Why is the strategy strong?

Because VWAP reveals to you the fair market price that institutions rely on.

And RSI reveals to you the strength of momentum and trend changes.

By combining both, you achieve precise entry and smart exit without guessing.

Suitable for day traders on small timeframes (1–5 minutes), and for advanced traders who focus on entering when institutions move, not during random noise.

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