Intraday Options Trading Strategy using CPR and VWAP

The intraday strategy using CPR and VWAP involves using the Camarilla Pivot Range (CPR) levels and the Volume Weighted Average Price (VWAP) to identify potential support and resistance levels for the day. 

Intraday Options Trading Strategy using CPR and VWAP

The strategy can be summarized as follows:

  • Look for the market to open near R1 and the previous day's high.
  • Confirm the trend with the VWAP. If the first 5-minute candle is trading below the VWAP, it could indicate a bearish trend, while if it is trading above the VWAP, it could indicate a bullish trend.
  • Wait for the price to come down to the CPR levels, which act as a magnet to the price.
  • Look for a W or M pattern to form near the CPR. A W pattern could indicate a bullish reversal, while an M pattern could indicate a bearish reversal.
  • Use the CPR levels as a stop loss and target.
  • Optionally, use options trading to capitalize on the expected movement of the price. For example, you could sell a put option at the CPR level strike and buy a put option at the ATM strike to profit from an expected move down in the price.

It's important to remember that this is just one possible intraday strategy, and it's always a good idea to do your own analysis and testing before using any strategy in live trading. Additionally, you should always use proper risk management techniques to protect your capital.

Special thanks to Suresh Kumar, Originally he developed this strategy on his observations.

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