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Vwapbands

VWAP explanation, description and usage examples.Hello Traders:) Enjoy this small tutorial about VWAP 1. Definition: VWAP is a popular technical indicator used in trading to assess the average price at which a security has traded throughout the required time range, weighted by the volume of each trade. It provides a reference point for traders to evaluate whether they are buying or selling at a favorable price relative to the average market price. 2. Using VWAP: - Trading Decisions: Traders use VWAP as a benchmark to make informed trading decisions. They may aim to buy when the current price is below VWAP, indicating a potential value opportunity, and sell when the price is above VWAP, suggesting potential overvaluation. - Order Execution: VWAP can help traders with large orders execute trades efficiently. By splitting the order into smaller portions and executing them at intervals close to the VWAP, traders can minimize market impact and obtain more favorable prices. - Identifying Trend Strength: VWAP can be used in combination with other technical indicators to assess the strength of price trends. When the price consistently stays above VWAP and VWAP slopes upward, it suggests a strong bullish trend, and vice versa for a bearish trend. 3. Different Types of VWAP and their purpose: - Intraday VWAP: This calculates the VWAP over a single trading session, typically from market open to close. - Rolling VWAP: It calculates the VWAP over a specified rolling time period, such as the past 20 days, providing a longer-term average. - Volume Profile VWAP: It calculates the VWAP for specific price levels within a range, giving insights into the distribution of volume at different price levels. - Additional option available on TradingView: Fixed Range Volume Profile. We can set the VWAP from literally any time and select only part of the intraday session. Useful, for example, to track your VWAP trade from the start of our trade. This allows us to determine the strength of the trend during our open trade. 4. Settings for Different Purposes: - Timeframe: Traders can choose different timeframes for VWAP calculations based on their trading strategies. Shorter timeframes (e.g., 5-minute or 15-minute) provide a more granular view of intraday trading, while longer timeframes (e.g., 1-hour or daily) capture broader trends. - Volume Weighting: Traders may consider using different volume types, such as total volume, buy volume, or sell volume, depending on their specific objectives and the information they want to incorporate into the VWAP calculation. 5. Visual Possibilities: VWAP can be plotted on trading platforms as a line or a ribbon overlaying the price chart. It is often displayed alongside other indicators, such as moving averages or Bollinger Bands, to provide additional context and facilitate analysis. 6. Additional Ranges of VWAP: - Standard Deviation Bands: Traders may add standard deviation bands around the VWAP line to identify potential overbought or oversold conditions. These bands help highlight when the price is deviating significantly from the average and can signal potential reversals or mean reversion. - Multiple Timeframe VWAP: Traders may plot VWAP calculations for different timeframes on the same chart to gain insights into intraday and longer-term trends simultaneously. This allows for a comprehensive view of price dynamics across different time horizons. Remember to adjust the settings and interpret VWAP in the context of specific trading strategies, market conditions, and the characteristics of the securities being traded. Additionally, it's recommended to backtest and validate any trading strategy before applying it in live trading. If you enjoy this tutorial please follow for more content and live trading:) At the end example of how I am using VWAP with Heikin Ashi on BTC:
BITSTAMP:BTCUSDEducation
by Vezzeris
2
BOIL Megaphone PatternBOIL on the 15-minute chart is currently in an upward facing megaphone pattern. I have drawn in the upper and lower trendlines which are a form of static support and resistance. The megaphone pattern is one of increasing volatility between buyers and sellers and indecision It is the opposite of consolidation in a narrow channel. The anchored VWAP shows BOIL to be between the mean VWAP and the first standard deviation band below it. This is generally considered the lower part of the fair value zone. The volume profile has a high volume area of in the price range of 3 to 3.7 while the POC line is confluent with the VWAP. The "better" RSI oscillator/ indicator shows values above 75 at swing highs and values below 25 at swing lows. My goal in this trade is to buy at the lower ( support ) trendline and sell at the higher ( resistance) trendline. I will be watchful for any fibonnaci retracements of a prior trend. At present, BOIL is at that lower trendline and RSI is showing weakness. I will add to my position now as I did in the whipsaw action some hours ago at the location of the bearish engulfing candles in the premarket and the opening.
AMEX:BOILLong
by AwesomeAvani
NFLX Watching for another BreakoutNFLX gapped up on the morning of 5/18 with high momentum and a volume spike both of which faded by mid-day shown on this 15- minute chart. Since then price has been in a narrow consolidation range centered about the POC line of the multisession volume profile. Price is in the fair value area between the mean anchored VWAP and the +1 STD band. The zero lag MACD is confirmatory for a trend resting in consolidation I will watch for green candles in a row with the second having more range than the first. I will check to see if the relative volume is 2X the running mean. If so, I will enter and try to get the early breakout. Stop loss will be $365 below the POC line. I will exit upon seeing upper wicks and volume falling back down to the mean. My expectation is for a quick 3 to 5 percent trade with a R:R of better than 10:!.
NASDAQ:NFLXLong
by AwesomeAvani
CVNA - Retracement UnderwayCVNA in the past couple of trading sessions had a 20 % move and then reversed downward. As shown on the 1 hour chart, price is below the demand/ resistance zone and sitting on the POC line of the multisession volume profile where volatility is often at its highest. The anchored VWAP indicator shows the bands are nearly flat. Price is in the fair value zone and falling towards VWAP. RSI is near 60 and dropping. I see this as a decent short setup. The first target is before the VWAP at 11.20 while the second target is at 10, the confluence of the bottom of the high volume area and the first VWAP band below the mean. the stop loss is near to the first VWAP band above the mean at 12.55. Fundamentally, CVNA has a decent earnings report but is subject to an impending recession where consumers may be not inclined to make big purchases such as cars.
NYSE:CVNAShort
by AwesomeAvani
4
Gold's Big Plunge-Is The Bear Market Just Getting Started? $GC1!Market Environments are constantly changing. One day a bull market is in play and the next day we could be starting a bear market. With inflation looking as though it's going to continue to come down, is the Gold Bull Market over? I think it is (for now). Who knows what the future brings, but with what I see in the data and what I see on the charts, Gold's next move is lower, not higher. In this video I go over why I believe that Gold is headed towards the low 1900's and key areas I will be using for resistance and support along the way. I use auto anchored VWAP's and 3 standard deviation lines around the VWAP's. Looking forward to reading your comments on this video. Cheers.
COMEX:GC1!Short
by anthonycrudele
1
USDCAD Short then LongUSDCAD in the past several sessions had a good uptrend then hitting a double top and reversal Sunday 5/15 after the open. The double top occurred at the of the second upper VWAP band above the mean and the top of the volume profile. On the descent , it has crossed under the POC line of the volume profile and is widway between the first positive VWAP bandline and the mean VWAP. Luxalgo's Echo indicator based on AI algorhythms predicts the trend down will bounce and reverse off the first lowewVWAP band at 1.337 into a consolidation sideways pattern for a day or two and then reverse. Accordingly, I will take a short position targeting 1.337 while getting a stop loss at the first upper VWAP ~ 1.35. I expect to close before swap comes into effect.
Short
by AwesomeAvani
DAX Monday SHORT setup. 200 points range. Market Profile/ VWAP Hello Traders:) I expect a morning rebound after the market opens to the red line levels. Hence, I will look for an opening of shorts with targets marked with green lines. The first level of short is the upper limit of the market profile for both Thursday and Friday. This level has been tested many times. The second level of potential short play is the upper limit of the weekly VWAP, which was tested on Thursday with a dynamic decline. Take profit first is the middle level of Thursday's Market Profile, while my second target is the bottom level of Thursday's Market Profile. I am planning to enter a small position at level 1, with a stop loss above the 2nd target. The rest of the items I include only after testing the second level. Depending on the situation, I can exit 50% after reaching target 1, or hold 100% of the position until target 2. The planned range of a potential trade - 200 points. I wish you all a great trading week!
EUREX:FDAX1!Short
by Vezzeris
2
Maybe VWAP bands are still the best?I know, I know, a very confusing title. Point is, we have been running after far too many indicators to tell us about BTC happening, but the best one to support us during the volatile period is still the VWAP bands. As we can see, price has bounced and being rejected from level 1 bands, upper side band. A very daunting place to make a decision of BTC future. I would its possible that it can break and go to abyss or go to heaven. My bet is abyss.
INDEX:BTCUSDShort
by Pratik_4Clover
BLUE Biotechnology New Earnings Catalyst LONGBlueBird Bio / BLUE had an earnigns report this past week showing earnings for the firat time but revenue was far below analyst's projections. Price has appreciated 40% in the 4 weeks since earnings which is about 500% annualized. GO BLUE. On the daily chart, price was above VWAP and consolidating much of last fall then dropped this YTD until the earnings report of last week. An uptrend is seen after the earnings. This has been a significant reversal sustained over the past month with price rising above the support / demand zone below it. At present, price is one standard deviation below VWAP making it undervalued and ascending. I see this as a risky long trade like many biotechology penny stocks but with a decent probability of profit in consideration of a target of 6.15 which is the top of the long term high volume area. the stop loss is just below the POC line of the volume profile at 3.15 An entry at 4.62 ( limit order above SMA200 (redlne) would yield at profit of 1.50 with a risk of 0.48 making for a R:R of 3:1. Another earnings report is coming up this week. If it is favorable, BLUE could go parabolic to hit the target in a day or two. If not, it will be time to exit the trade.
NASDAQ:BLUELong
by AwesomeAvani
7
EURGBP SHORT @ ResistanceEURGBP on the 30-minute chart has ascended to the supply / resistance zone marked by the LuxAlgo indicator. It is far extended in the overvalued zone two standard deviations above the mean anchored VWAP. There is confluence in the volume profile which shows price far above the POC line and also above the top margin of the high-volume area of the profile. Finally, the stochastic RSI is showing bearish divergence. Accordingly, I will take a short position and also check the EURUSD pair and GBPUSD pair for analysis.
Short
by AwesomeAvani
AUDUSD Rising LONGOn the 4H chart, AUDUSD is rising over the intermediate term volume profile POC and ascending the anchorded VWAP bands as well; Price rose from undervalued to fair-valued on the VWAP bands. The Chris Moody RSI indicator flashed a a pair of buy signals and RSI rose over the 50% line. Another good sign is price is approaching a volume void /gap on the volume profile. Finally there was a mild volume spike when price reversed from the bottom of the high volume area on the profile. I am looking for rising price action in the intraday upcoming once both London and New York sessions are overlapping.
Long
by AwesomeAvani
ULTA has Overextended Strength SHORTULTA a women's beauty focused company has benefitted from the end of the Covid Era, Earnings reports have been rock solid for sure. I think ULTA is overdue for a correction. On the 4H Chart, supply and demand zones are per the LuxAlgo indicator. Price touched and retested demand several times last summer and early fall. It is now touching and testing the supply zone above the POC line of the long term volume profile. It is in the overvalued region of the long term anchored VWAP bands. The Wycoff buying /selling oscillator is still positive but with a decreasing amplitude. I see ULTA as setting up for a short sell entry. The entry could be now but a better entry would wait for price to get under the POC line at HKEX:528 and the volume oscillator turn to negative with the histogram below the zero line showing bearish volume momentum. My preferred position is a put option at a strike of HKEX:530 expiring on 5/19/23.
NASDAQ:ULTAShort
by AwesomeAvani
1
MILN Electric Vehicle Penny Stock MULN is a nine-penny stock that is high volatile with a wide ATR. On the 15-minute chart, price is currently sitting above the support zone shown by the Luxalgo indicator. Upside to the resistance zone is nearly 40% which this stock can do in 1-2 days. Just in the past two days MULN formed a double top at 12 cents near to the VQAP + 2 then tended down. After the downtrend price currently in the undervalued range one standard deviation below VWAP which MULN is using for support. The RSI confirms price as in the low oversold zone while the high relative volume in the past couple of days affirms trader interest. Once a reversal is steadily underway I suspect a volume surge will drive price higher and do so quickly. I see this as a great opportunity to take swing long trade looking for at least 1/2 of the upside 40%. The stop loss will be set just below the support zone. If price moves there the trade is invalidated. If not the target is 12 cents at the level of the double top or alternatively a more conservative target of one standard above VWAP ( blue line) at about 11.4 cents. Lastly, there is the alternative of inexpensive options which if taken strategically can significantly leverage the returns of a stock trade.
NASDAQ:MULNLong
by AwesomeAvani
3
MGRX Biotech Penny Stock Pullback for Continuation LONGMGRX with some FDA news catalyst got a lot of action on the last session of the week. With the pullback and overwhelming volume during the session, a continuation into the upcoming week is entirely reasonable. ( see also the link) MGRX had a last price of about $1.50 about a 50% retracement from the high of the day. I will take a position at market price in the pre-market opening the week. The target will be $2.25 or midway between the current price and the high of the last session. This will represent a 50% Return on Trading Position. I will set a stop loss at $ 1.40 representing a 10% loss. Price at present is sitting on a confluence of support of both the 20 and 50 HMAs along with the lowermost VWAP band. The reward for risk is 5X. MGRX does not have options. I expect the long trade to hit the continuation target in less than 5 days. I will set a buy-stop order to take a position when the price exceeds $ 1.55 with a stop loss of $0.15 to account for the expected volatility.
MLong
by AwesomeAvani
GOSS Penny Biotechology SHORTGOSS is a biotechnology penny stock without earnings valued based on future earnings potential based on a "pipeline" which is subject to a long timeline of FDA regulation. On the 30 minute chart. price is shown as being in the overvalued area in the upper VWAP band and well above the POC line of the long-range volume profile. The RSI indicator is now showing a bearish divergence as the relative strength is weakening. Price has bounced down from the resistance of the line representing two standard deviations above VWAP. The supply / demand zones are indicated by the Indicator applied which is authored by Luxalgo. Price has hit the supply zone lower border and is now in an early reversal. I see this as a swing short trade also played with taking put options. Stop loss is in the upper area of the red supply zone. Targets include first the POC line of the volume profile and then a final target at one STD below VWAP also being just above the demand zone. Alternatively put options at the strike of $ 1.50 for the May monthly expiration of 5/18 This trade will benefit from any expected pullback in the general markets.
NASDAQ:GOSSShort
by AwesomeAvani
GANX Biotechnology Penny Stock Uptrending LONGGANX had been in a tight consolidation channel prior to April 12th. This is the uncommon high tight flag pattern. Once breaking out, the typical guidance is the next leg up will be at least the distance of the flagpole portion of the pattern. On April 12th, a new chief financial officer was appointed to Gain Therapeutics. ( see the link below ) This is part of the push to generate earnings while still developing a pipeline and potentially the first profitable FDA-approved product. Another view is the company is trying to clean up its balance sheet and make itself into a takeover target. One way or another I will not argue with a potential path to shift the fundamentals nor with the high tight flag pattern breakout. The last session of the week had a massive wide- ranging engulfing green candle. I will look for more of the same. The final target is $6.15 as the top of the wick of that candle while the first target is $5.80 being the top of the upper VWAP band.
NASDAQ:GANXLong
by AwesomeAvani
GE reversing to down trend SHORTGE has been trending recently off a base of consolidation after a downtrend. In the last session, the reversal began. The 15 minute charts shows price riding the upper bands of the anchored VWAP in the overvalued and overbought zone. The support resistance indicator of Luxalgo shows that price bounced down from the resistance zone. The stochastic RSI shows bearish divergence and loss of strength. I see this an opportunity for a swing short trade which will be synergized if the general market takes a downturn in the week upcoming. I will play this with put options with 10 DTE at a strike a few percent above market price and look for 50 % return in the 5-7 trading days upcoming. I will sell a few days before expiration no matter to avoid time decay affecting the potential profil.
NYSE:GEShort
by AwesomeAvani
LABD 3X BEAR BIOTECH LONG DAYTRADEAs shown on the 15-minute chart, LABD is bouncing between stardard deviations of the VWAP in a 6% price range fluctuation day to day. At the upper end it is reversing at the POC of the volume profile confluent with one standard deviation above VWAP while at the bottom it is bouncing from the bottom of the lower high volume area of the profile and two standard deviations below VWAP. I see this as an opportunity for a 6% upside long day trade especially if the general market is uptrending after the weekend. Alternatively, a 5 DTE call option with a strike of $ 15.50 or $16.00 looking for a 30-40% return on the premium over the upcoming week. ( The zero lag MACD confirms the buy signal.)
AMEX:LABDLong
by AwesomeAvani
USO Up or Down OIL ECOMONY in fluxAs certain countries want to exchange oil for money with anything but USD such as Chinese Yen or even a cryptocurrency to be launched by US neutrals or adversaries cooperating, USO on this chart rose dramatically over the past month and is now sitting at resistance as shown by the LuxAlgo Supply and Demand Zone indicator. The RSI shows possible bearish divergence perhaps heralding a reversal of the uptrend. I see this as a good place to take a short sell entry and most buyers have taken their profits. Fundamentally there are enough competing geopolitical and macroeconomic factors to deprive USO of the energy to push through resistance. See also the link below from US federal forecasters. I see this as a short trade at a limit price below the resistance zone and stop loss above it. Profit targets can be the VWAP, the midline between the supply and demand zones as a 50% Fibonacci retracement of the uptrend and finally one standard deviation below the anchored VWAP making for a safe three-tiered take-profit procedure to optimize profit and diminish risk also adjusting the stop loss at intervals using ATR as a guide. 40% at each of the first two targets and the remainder at the last. Put options 20-30 DTE at the a strike above the resistance zone for a good delta are another consideration.
AMEX:USOShort
by AwesomeAvani
1
AAL LONG American AirlinesAAL is shown here on a one hour chart with anchored VWAP bands shown. The anchoring is set for the beginning of the year. Based on the price action drawn in are support and resistance zones. When price is one or more standard deviations below the mean VWAP, the stock is undervalued and institutional buyers will set buy orders. ( Short sellers will close there position to provide shares to the buyers and take their profit off the table (When the price is one or more standard deviations above the mean VWAP, the stock is overvalued. Institutional sellers will sell their shares ( either shares at a profit or short sell ) At present price, action has retreated to the upper part of the support zone. AAL is getting to a buying point. The relative volume indicator shows huge increases in volume compared with the rolling average volume of the past 50 days. Essentially current volume is 10X that average meaning there is extreme interest in this stock and great liquidity. Fundamentally, AAL has had two prior quarters of earnings reports and the upcoming earnings could be fueling volatility and potential price surge. I see this as reversal setup for great entry for a 45-60 DTE call option at or in the money or a long swing trade targetting just below the resistance zone or one standard deviation above the VWAP.
NASDAQ:AALLong
by AwesomeAvani
GM General Motors Pre Earnings LONGGM is on a 4H chart. Fundamentally, the last earnings were good. GM is challenged by the adoption of electric vehicles and the transformation of its core business. Small EV companies ( CANOO, RIDE, WKHS, FFIE, MULN) are mainly undercapitalized noise. The competition is really TSLA and Ford. Earnings upcoming are April 25th Technically, the price has been trending also a support of the lower standard deviations of the anchored VWAP originating on the date of the last earnings. Recently price has moved from -2 STD VWAP band to the higher -1 STD band. Price is now sitting on the support shown by the Luxalgo indicator with the earnings report due The VWAP bands are quickly losing slope as earnings report day of April 25 approaches. the zero lag MACD has lines crossing under the zero line and the histogram has just turned positive. These serve as confirmation entry signals. I see this as entry time for an earnings play. Entry is by market order with a stop loss below the demand zone. Targets are VWAP ( purple line), the midline between the demand/supply zones, and then the final target is the +1 STD above VWAP ( downsloping stepped black line). Overall a reward for the risk of about 4X. I may opt to play this with call options striking $35.00 expiring on 5/5 and currently priced at FWB:112 per contract.
NYSE:GMLong
by AwesomeAvani
How To Trade A Choppy Tape - Technical Analysis ES1! RTY1! MNQ1Big picture charts always supersede short term charts. Many day traders think that just because they are short term traders they don't need to look at the big picture charts, but in order to be a better executor of your short term strategy you need to understand the context of the current market environment. Should I be smaller and quicker to cover my trades? Should I hold on to this long or this short because we're breaking out on the higher time frame? All of this matters when you're looking to become a better trader. In today's video I go over the context of the current market environment in the ES1!, MNQ1, RTY! and YM1!. I use a 10 day moving average, Auto Anchored VWAPs, and I use a short term chart (3 minute) to explain why I have been using standard deviation lines on to scalp ES1! futures in this choppy tape.
CME_MINI:ES1!
by anthonycrudele
2
TMF 20 year 3x Leveraged Treasuries ETFTMF completed an uptrend from 3/28 to 4/6 and then a retracement of it. It is now positioned above the 0.5 Fibonacci level also the VWAP of the anchored multisession VWAP indicator in the fair value ( and high volatility ) area also near to and importantly above the POC line of the intermediate-term volume profile. This high confluence yields strong support for the continuation of an uptrend targetting $10.00 the pivot high this past February with a stop loss of $8.92. For those looking for a high reward entree with the requistite risk appetite a call option with a strike of $9.00 or $ 9.50 expiring 5/19 or 6/16 might be what is on the menu.
AMEX:TMFLong
by AwesomeAvani