VKM-RangeTrap-Indicator v1.1

VKM-RangeTrap-Indicator v1.1 (AUDCAD M5)

Indicator Name: VKM-RangeTrap-Indicator v1.1
Recommended Timeframe: M5
Example Pair: AUDCAD
Method: VWAP-based range-reversal trading

🧭 Strategy Concept

AUDCAD is known for its narrow daily range and frequent sideways movements, especially during the Asian and early European sessions.
The VKM-RangeTrap strategy takes advantage of this characteristic by using VWAP (Volume Weighted Average Price) and its standard-deviation envelopes (Sigma) to detect temporary overbought and oversold zones.

When the price touches or breaks below the lower VWAP-Sigma band, it indicates a temporary oversold area → BUY signal.

When the price touches or breaks above the upper VWAP-Sigma band, it shows temporary overbought conditions → SELL signal.

A CCI(20) filter can be used to confirm momentum reversal (signals trigger only when CCI crosses the zero line).

⚙️ Basic Configuration
Range Method: VWAP
Sigma (Standard Deviation): 5
Sigma Length: 20
Confirmation Filter: CCI(20)
Signals: Green arrow (BUY) and red arrow (SELL) plotted directly on the chart

💡 Suggested Trading Approach
Timeframe: M5 (M3 if you want denser signals)
Entry Rules:
BUY when a green arrow appears near the VWAP-Lower support zone.
SELL when a red arrow appears near the VWAP-Upper resistance zone.
Take Profit: Use R:R ≈ 1:1.5 or an ATR-based trailing stop.
Stop Loss: Beyond the corresponding VWAP boundary or 10–20 pips away depending on volatility.
Best Conditions: Ranging or balanced markets (Asian session or early London).

📈 Performance on AUDCAD M5
AUDCAD typically moves in a stable 20–40-pip range, making it ideal for VWAP range-based trading.
The indicator performs best in sideways or mild pullback phases within larger trends.
With the CCI filter enabled, false signals are greatly reduced, resulting in steady scalping opportunities.
Suitable for day traders and scalpers aiming to profit from frequent VWAP reversals throughout the day.

⚠️ Notes
This is a range-reversal indicator, not a trend-following system.
Avoid trading during high-volatility news releases when VWAP bands expand sharply.
Can be combined with momentum indicators (ADX, WaveTrend, etc.) for stronger confirmation.