Crude Oil VWAP Strategy

MCX Intermediate CRUDEOIL CRUDEOILM
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Quick Reference

Strategy Type Mean Reversion / Trend Following hybrid
Market Bias Directional based on price position relative to VWAP
Timeframe 5-minute to 15-minute charts
Holding Period 30 minutes to full session
Risk Reward Ratio 1:1.5 to 1:2.5
Capital Required ₹25,000-1,25,000 depending on contract
Best Market Conditions Trending sessions with clear VWAP respect, avoid choppy days
Key Concept Use VWAP as dynamic support/resistance and institutional benchmark

India-Specific Notes

Contracts

CRUDEOIL 100 barrels • ₹1 per barrel • ₹100 per tick • ₹35,000-50,000 • ₹70,000-1,00,000
CRUDEOILM 10 barrels • ₹1 per barrel • ₹10 per tick • ₹4,000-6,000 • ₹8,000-12,000

Optimal Vwap Windows

Morning Development 9:00 AM - 12:00 PM IST • VWAP establishing, early directional bias forming
Afternoon Confirmation 12:00 PM - 5:00 PM IST • VWAP stabilizing, clearer trend identification
Us Session 6:30 PM - 11:00 PM IST • Best volume, VWAP most reliable, institutional activity highest

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