how to day trade based on the vwap - bearbulltraders.com · the most important day trading...

How to Day Trade with the VWAP

COPYRIGHT (C) ANDREW AZIZ WWW.BEARBULLTRADERS.COM

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Appreciation

1 Free Lifetime Plus Membership in BBT Community ($1,299 value)

14 Days Free Membership in Our BBT Community for all Attendees

Free e-Book of my book How to Day Trade for a Living

Study: PhD

Proud of Achievements and Career!

Opps, I was let go!

My Story

Trading alone is very difficult and emotionally overwhelming. It is also boring.

To Whom will you ask your questions?

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.

My Trading Tools: Scanner

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

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)

My Course is Availablefor Free on Our Website

I believe in the “Open Course” concept.

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

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

Open: Move above VWAP: institutions are buying or covering their short.Retail traders can go long with ORBU.

Late morning: institutions are dumping shares

Late morning or Afternoon, False Breakout!

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)

VWAP: Powerful profit target or stop loss for other strategies

Stopped outabove VWAP

VWAP: Powerful profit target or stop loss for other strategies

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.

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

May 17 2017 TGT False Breakout

VWAP False Breakout

May 15 2017 IONS False VWAP BreakOut

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.

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)

Thank you!Questions? Email me: andrew@bearbulltraders.com

My book is free today and tomorrow (May 24 and 25th) to download on Amazon.com

Appreciation

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

Code expires (tonight 10 pm EST)

how to day trade based on the vwap - bearbulltraders.com · the most important day trading...

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