Post on 31-Jan-2021
transcript
How to Day Trade with the VWAP
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Study: PhD
Work
Proud of Achievements and Career!
Opps, I was let go!
My Story
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Trading alone is very difficult and emotionally overwhelming. It is also boring.
To Whom will you ask your questions?
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3 Stages Trading Education in Our Community
1. Mechanical Aspect• Learn how to use the tools: Broker, Platform (DAS), Hotkeys, Scanner, Chatroom, Newsfeeds
2. Technical Aspect• Learn how to find Stocks in Play
• Trading Strategies. Practice “recognition” of trading patterns
• Practice position sizing, trade, and risk management
3. Psychology of Trading• Emotional trading
• Greed and fear of missing out (FOMO)
• Revenge trading
• How to deal with losses
If there is such a thing as a secret to the nature of trading, this is it.
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My Trading Tools: Scanner
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Simple Indicators:
9 and 20 EMA50 and 200 SMAVWAPSupport/Resistance Levels
Time frame:
5-min (main chart)1-min (additional)Daily (for finding levels)
My Trading Tools: DAS Platform
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My Trading Strategies
Mid Floats StocksOpening Range Breakouts
ABCD Pattern / Reverse ABCD Pattern
VWAP Trading◦ VWAP Reversals
◦ VWAP False Breakouts
◦ VWAP Moving Average Trends
Low Floats StocksBull Flag
Fallen Angel
Float Price RangeLow float(~less than 20 million)
Under $10
Medium float(20-500 million)
$10-$100 (my favorite!)
Large float(+500 million)
Any (usually +$20)
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My Course is Availablefor Free on Our Website
I believe in the “Open Course” concept.
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VWAP: Volume Weighted Average Pricethe most important day trading indicator
• VWAP is only an “intra-day” indicator. We do not have VWAP on daily or weekly or etc chart.
• VWAP is important for institutional traders for filling large orders.
• Managers compare traders average filled price vs. VWAP.
◦ A large buy order filled below VWAP is considered a good fill. Institutions looking to buy will often try to buy
when the price is below VWAP, as they are able to accumulate shares at a better than average (VWAP) price.
◦ Reverse also applies to large sell order
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Afternoon, below VWAP: Selling pressure on stockRetail traders can go short
Open: Sell off below VWAP: institutions are dumping their shares. Retail traders can go short by a ORB.
Late morning: institutions are accumulating shares + shorts are covering
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Afternoon, below VWAP: Selling pressure on stockRetail traders can go short
Open: Move above VWAP: institutions are buying or covering their short.Retail traders can go long with ORBU.
Late morning: institutions are dumping shares
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Afternoon, below VWAP: Selling pressure on stockRetail traders can go short
Late morning: institutions are dumping shares
Late morning or Afternoon, False Breakout!
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How I Use VWAP for Day Tradinga. The most important support or resistance level
Powerful profit target or stop loss for other strategies
b. Strategies:
1. VWAP Reversal at the Open (Brian’s double bottom reversal!)
2. VWAP False Breakout (~10:00 am -12:00 pm)
3. VWAP Moving Average Trend Trade: loss or hold of VWAP (after ~10:30 am)
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VWAP: Powerful profit target or stop loss for other strategies
Stopped outabove VWAP
Short
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VWAP: Powerful profit target or stop loss for other strategies
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1. VWAP Reversals at the Open
A weak Stock in Play below VWAP can not make a new 5-min Low:
◦ Possible long reversal toward VWAP and Above
When a strong Stock in PLAY above VWAP can not make a new 5 min high:
◦ Possible short reversal back to VWAP and below
This could be a reversal to the Opening Range Breakdown or Breakup.
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2. VWAP False BreakoutsStocks in Play should start a trend in the afternoon above or below VWAP. If they do not, they are likely false breakouts.
False breakouts, can not establish a trend above
Go short
Strong Trend Established after VWAP
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May 17 2017 TGT False Breakout
VWAP False Breakout
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May 15 2017 IONS False VWAP BreakOut
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3. VWAP Moving Average Trend Trade
Stocks in Play usually hold or lose VWAP after the Open and late morning.
Retail traders would go after them based on 9 and 20 EMA for a short and long.
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Summary
Mid Floats StocksOpening Range Breakouts
ABCD Pattern / Reverse ABCD Pattern
VWAP Trading◦ VWAP Reversals
◦ VWAP False Breakouts
◦ VWAP Moving Average Trends
Low Floats StocksBull Flag
Fallen Angel
Float Price RangeLow float(~less than 20 million)
Under $10
Medium float(20-500 million)
$10-$100 (my favorite!)
Large float(+500 million)
Any (usually +$20)
COPYRIGHT (C) ANDREW AZIZ WWW.BEARBULLTRADERS.COM
Thank you!Questions? Email me: andrew@bearbulltraders.com
My book is free today and tomorrow (May 24 and 25th) to download on Amazon.com
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mailto:andrew@bearbulltraders.com
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1 Free Lifetime Plus Membership in BBT Community ($1,299 value)
14 Days Free Membership in Our BBT Community for ALL Attendees:
use discount code SPEEDTRADER14 for Our Basic Plan
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