VWAP, 20 SMA, 9 SMA High Convergence Strategy

An hourly intraday options and stocks trading strategy using VWAP, 20 SMA, and 9 SMA High convergence for entry signals. Focuses on high-momentum moves.

Published · Updated · Methodology: Technical Indicators

Part of: Moving Average Strategies

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: Hourly
  • Markets: Intraday Stocks Options, Stocks, Options

Indicators used

  • VWAP
  • 20 SMA (Simple Moving Average)
  • 9 SMA High (Simple Moving Average of High)
  • Bollinger Bands

Source video

Decoded from: This 3-Indicator Setup Finds Explosive Intraday Moves Before They Happen by Strategy in minutes — watch the original

Key timestamps:

  • 0:44 - Introduction to capturing trends and identifying momentum stocks
  • 1:10 - Introduction of VWAP
  • 1:45 - Introduction of 20 SMA and 9 SMA High
  • 2:10 - Core strategy concept: convergence of all three indicators
  • 2:35 - Timeframe for strategy (Hourly)
  • 3:10 - Importance of average-based indicators
  • 4:20 - Visual explanation of convergence on chart
  • 5:00 - Adding Bollinger Bands (20 SMA is middle band)
  • 5:40 - Setting up 9 SMA High on TradingView
  • 7:30 - Example 1: Titan stock
  • 9:40 - Example 2: Paytm stock, entry near convergence
  • 10:30 - ATM/OTM strike selection for options
  • 12:00 - Example 3: CAMS stock
  • 14:00 - Scanner creation for the strategy
  • 15:30 - Hourly timeframe allows for trading on subsequent days
  • 16:30 - Example 4: Godrej Properties
  • 18:00 - Take profit using Bollinger Bands upper/lower side
  • 18:50 - Stop loss criteria

Strategy overview

A moving average distills recent price into a single line that follows the trend — and this setup, decoded from Strategy in minutes' video "This 3-Indicator Setup Finds Explosive Intraday Moves Before They Happen," is built almost entirely from that family of lines. Rather than pairing one average with an unrelated oscillator, the video stacks three average-based references — VWAP, a 20-period SMA, and a 9-period SMA taken from the high — and treats the moment they converge as the signal worth watching.

What makes the framing distinctive is that each of the three lines measures a different slice of price. VWAP is a volume-weighted average anchored to the intraday session; the 20 SMA tracks closing prices; and the 9 SMA of the high rides the upper edge of recent ranges. Convergence, in this reading, is really agreement across those different reference points — volume, closes, and highs pointing to the same area at once. The video runs the idea on the hourly timeframe for momentum stocks, and it's worth noting that the fourth indicator, Bollinger Bands, is itself built on that same 20 SMA as its middle line, so much of the setup orbits a single 20-period average.

As the channel name suggests, this is a quick-to-assemble concept rather than a heavily engineered system, and the title's promise of spotting "explosive intraday moves before they happen" is the video's own claim, not a tested result. How convergence is defined, how tightly the lines must sit, and how entries and exits are handled are the details that decide whether an alignment is meaningful or just noise. This page focuses on the convergence concept and how the source video frames it on the hourly chart.

Topics

vwap strategy · 20 sma · 9 sma · hourly trading strategy · intraday strategy · options trading strategy · stocks trading strategy · technical indicators · bollinger bands strategy · tradingview strategy · momentum trading · price action strategy · convergence strategy

Frequently asked questions

What is the 3-indicator convergence setup in this strategy?

It watches for VWAP, a 20-period SMA, and a 9-period SMA of the high to line up in the same area. Because all three are average-based, their convergence signals that different measures of price — volume-weighted, close-based, and high-based — are pointing the same way at once, which the video treats as the cue for a potential intraday move.

Why use a moving average of the high instead of the close?

A moving average calculated from each bar's high tracks the upper boundary of recent price rather than its center, so it sits above a standard close-based average. In this setup it acts as one of the three reference lines whose alignment the video looks for.

What timeframe is this convergence strategy designed for?

The source video applies it on the hourly timeframe, using it to find intraday momentum in stocks — the average-based lines are read on that horizon rather than on lower scalping timeframes.

How can I test a multi-indicator convergence setup before trading it?

Backtest it on historical intraday data to see how often the three lines actually converge and what tends to follow. Strategy Decoder extracts the structure of strategies like this one from video sources so you can evaluate the idea on TradingView.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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