Turning "watch the average price line" into an actual rule

Somewhere along the way I picked up the habit of keeping a running session average on the intraday chart and asking one question about it constantly: is price above or below. It is essentially a session VWAP, but treating it as a regime marker rather than as support turned out to be the more useful framing. So I turned the habit into a rule rather than a vibe. Above the session average = the average buyer today is in profit, and dips get bought. Below = the average buyer is underwater, and rallies get sold into. # BUY — only on the side of the session average where dips get bought if Price > Sma(1800) and Price <= Sma(300): if Strength > 105 and DayAmount > 5000000: Buy()The long average approximates the session average, the short one finds the pullback. What changed for me wasn't the entries — it was that I stopped taking longs below the line entirely, and that alone removed a whole category of trades I never should have taken.
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FiveMinFiona
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4 replies

ZenTrader_Ana· Jul 2026 ago
"It removed a whole category of trades I never should have taken" is the best possible outcome from a rule and the hardest to notice.
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IndicatorSkeptic· Jul 2026 ago
I'll allow this one. It's a single line with a clear economic meaning, which is more than most indicators manage.
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RiskFirstRita· Jul 2026 ago· edited Aug 2026 ago
The part I'd add to your checklist: if the line is what makes the trade valid, then losing the line is what makes it invalid. Otherwise you end up holding a long that failed your own entry condition. And fewer setups is not a licence to size the survivors bigger, that's the trap I see people fall into right after they add a good filter.
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DrawdownDave· Jul 2026 ago
I spent a whole stretch buying dips below that line and calling it 'value'. Every one of them looked fine for ten minutes. The rallies I was buying were the ones other people were selling into, I just hadn't worked out I was the other side yet.
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