📘  With VWAP, EMA, RSI, and Candlestick Signals

A collaborative lesson from Ashok ji and Copilot, curated for seniors and beginners seeking clarity, conviction, and calm in trading.

🧰 Core Tools & Indicators

🧠 Strategy Flow: Step-by-Step

1. Opening Context
   • Observe first 15–30 minutes for volatility.
   • Use VWAP as your anchor—wait for price to stabilize above or below.
2. Identify Setup
   • Look for candles near VWAP with strong wicks or bodies.
   • Confirm with RSI (near 30 or 70) and EMA alignment.
3. Example from Today’s Chat
   • 13:39 Red Candle: Small body, long lower wick → resembles a hammer.
     • Ashok ji asked: “Can this be a reversal?”
     • Copilot replied: “Yes, if followed by bullish confirmation.”
   • 14:30 Green Candle: Strong body, no upper wick → buyers stepping in.
     • Price pulls back to VWAP → bullish continuation setup.
     • Ashok ji noted: “Price coming down for retest.”
     • Copilot confirmed: “Healthy retest—watch for rebound.”
4. Confirmation & Entry
   • Wait for bullish candle above VWAP after pullback.
   • RSI should be rising from 30–50 zone.
   • EMA should be sloping upward.
5. Exit Strategy
   • Use RSI near 70 or bearish candle near resistance.
   • Watch MACD histogram fading or crossover.

🧘 Philosophical Reflections from the Chat

“Even a candle that seems silent—no upper wick, no drama—can carry meaning. But wisdom lies in watching its neighbors.” “Momentum doesn’t mean rushing. It means returning to center before rising again.” “RSI is the pulse. MACD is the heartbeat. Bollinger Bands? The skin that stretches and contracts with emotion.”

🧩 Tips for Learning RSI (Finalized at 70/30)

• ✅ RSI near 30 + hammer candle = potential reversal
• ✅ RSI near 70 + shooting star = possible exhaustion
• ⚠️ RSI divergence = price and momentum disagree
• ❌ Avoid 60/40 or 80/20 unless strategy demands it