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Combined Fib + EMA + VWAP

Combined Strategy Summary​

You have two complementary systems:

  1. Fibonacci Retracement = Reversal signals (counter-trend)
  2. EMA Crossover = Momentum signals (trend-following)

Entry Signal Matrix​

BUY CALLS scenarios:​

Fibonacci Signal:

  • Price crosses below 78.6% retracement (green line)
  • Stock is oversold → expects bounce UP

EMA Signal:

  • Green arrow appears (EMA9 crosses above EMA14)
  • EMAs are stacked bullishly (EMA14 > EMA21)
  • Most EMA lines turn green

BUY PUTS scenarios:​

Fibonacci Signal:

  • Price crosses above 23.6% retracement (red line)
  • Stock is overbought → expects pullback DOWN

EMA Signal:

  • Red arrow appears (EMA9 crosses below EMA14)
  • EMAs are stacked bearishly (EMA14 < EMA21)
  • Most EMA lines turn red

Best Entry Setups (High Probability)​

Strongest CALL Setup:​

  1. Fibonacci: Price hits 78.6% level (oversold)
  2. EMA: Green arrow appears shortly after
  3. Confirmation: EMAs turn green, price above VWAP
  4. Action: Buy calls

Strongest PUT Setup:​

  1. Fibonacci: Price hits 23.6% level (overbought)
  2. EMA: Red arrow appears shortly after
  3. Confirmation: EMAs turn red, price below VWAP
  4. Action: Buy puts

Quick Decision Tree​

🎯 See Fibonacci signal → Wait for EMA confirmation
📊 See EMA arrow → Check if near Fibonacci level
✅ Both align → High confidence entry
❌ Conflict → Wait or skip

Risk Management Rules​

  1. Entry timing: Wait for both signals to align
  2. Stop loss: Exit if EMAs flip color against your position
  3. Take profit: Target the opposite Fibonacci level
  4. Time decay: Don't hold options overnight unless very confident

Visual Checklist on Your Chart​

For CALLS:

  • ✅ Price near bottom green Fibonacci line (78.6%)
  • ✅ Green arrow appears
  • ✅ EMA lines turning green
  • ✅ Price above VWAP

For PUTS:

  • ✅ Price near top red Fibonacci line (23.6%)
  • ✅ Red arrow appears
  • ✅ EMA lines turning red
  • ✅ Price below VWAP

The key is patience - wait for both systems to agree before entering. When they align, you have both reversal potential (Fibonacci) and momentum confirmation (EMA) working together.