Natural Gas VWAP Strategy

MCX Intermediate NATURALGAS NATGASMINI
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Quick Reference

Strategy Type Intraday Mean Reversion / Trend Following
Market Bias Adaptive - Trade pullbacks to VWAP or VWAP breakouts
Timeframe 1-minute to 15-minute charts
Holding Period Minutes to hours (intraday)
Risk Reward Ratio 1:1.5 to 1:2.5
Capital Required ₹40,000-1,50,000 depending on contract
Best Market Conditions Active trading sessions with good volume
Key Concept Use Volume Weighted Average Price as dynamic support/resistance and fair value reference

India-Specific Notes

Contracts

NATURALGAS 1250 MMBtu • ₹0.10 per MMBtu • ₹125 per tick • ₹40,000-60,000 • ₹80,000-1,20,000 • 3-8% (extremely volatile)
NATGASMINI 250 MMBtu • ₹0.10 per MMBtu • ₹25 per tick • ₹10,000-15,000 • ₹20,000-30,000 • 3-8% (extremely volatile)

Vwap Reset Times

Mcx Session Vwap Resets at 9:00 AM IST (session start)
Us Session Vwap Some traders reset at 6:30 PM IST (US open)
Rolling Vwap Continuous calculation without reset

Optimal Vwap Sessions

Morning Session 9:00 AM - 12:00 PM IST • VWAP establishing, less reliable early
Afternoon Session 12:00 PM - 6:00 PM IST • VWAP more stable, good mean reversion
Us Session 6:30 PM - 11:00 PM IST • Highest volume, VWAP most meaningful

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