Use VWAP as the fair-value line and daily Pivot / R1 / S1 as intraday levels. Fade extremes toward VWAP in range days; ride breakouts of R1/S1 with VWAP as support/resistance in trend days.
Identify the day's character early: price magnetic to VWAP = range day; price walks away from VWAP = trend day
Entry
Range day: fade extremes — when price hits R1 or S1 and forms a reversal candle, take a mean-reversion trade back toward VWAP. Trend day: buy pullbacks to VWAP in an uptrend (or short rallies to VWAP in a downtrend), targeting the next pivot level.
Exit
Range: exit at VWAP (fade trades) or opposite pivot. Trend: exit at R2/S2 or when price closes decisively back through VWAP.
Stop-loss
Range: beyond R1/S1 that failed. Trend: on the far side of VWAP (e.g., if long above VWAP, stop below VWAP by 0.3-0.5×ATR).
When it works
Range days confined between R1 and S1 — VWAP magnets price
Institutional days where VWAP is the algorithmic benchmark
Nifty and BankNifty — both have deep liquidity around pivots
When it fails
Strong-trend gap-and-go days — price never revisits VWAP
News-driven whipsaws — pivots get run through in seconds
Very quiet lunch sessions where nothing respects any level
General trading rules that apply
Regardless of the specific setup, these apply to every strategy on this site:
Never risk more than 2% of your account on a single trade
Place a hard stop-loss before entering — no exceptions
Journal every trade: setup, reason, outcome, one lesson
After two consecutive losses, stop for the session
Backtest and paper-trade for a month before deploying real capital
Educational content only
Every strategy here is an educational description of a widely-known technical setup. Past behavior does not guarantee future results. The chart above uses synthetic price data generated for illustration — real market behavior varies. Backtest, paper-trade, and size responsibly before risking real capital.