How to Day Trade with the VWAP COPYRIGHT (C) ANDREW AZIZ

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Ella Chase
5 years ago
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1 How to Day Trade with the VWAP

2 Disclaimer BearBullTraders.com employees, contractors, shareholders and affiliates, are NOT an investment advisory service, a registered investment advisor or a broker-dealer and does not undertake to advise clients on which securities they should buy or sell for themselves. You understand that NO content published as part of the BearBullTraders Room and its Website constitutes a recommendation that any particular investment, security, portfolio of securities, transaction or investment strategy is suitable for any specific person. You further understand that none of the creators or providers of our Services or their affiliates will advise you personally concerning the nature, potential, value or suitability of any particular investment, security, portfolio of securities, transaction, investment strategy or other matter.

3 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

4 My Story Work Study: PhD Proud of Achievements and Career! Opps, I was let go!

6 Trading alone is very difficult and emotionally overwhelming. It is also boring. To Whom will you ask your questions?

8 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.

9 My Trading Tools: Scanner

10 My Trading Tools: DAS Platform Simple Indicators: 9 and 20 EMA 50 and 200 SMA VWAP Support/Resistance Levels Time frame: 5-min (main chart) 1-min (additional) Daily (for finding levels)

11 My Trading Strategies Mid Floats Stocks Opening Range Breakouts ABCD Pattern / Reverse ABCD Pattern VWAP Trading VWAP Reversals VWAP False Breakouts VWAP Moving Average Trends Low Floats Stocks Bull Flag Fallen Angel Low float Float (~less than 20 million) Medium float ( million) Large float (+500 million) Price Range Under $10 $10-$100 (my favorite!) Any (usually +$20)

12 My Course is Available for Free on Our Website I believe in the Open Course concept.

13 VWAP: Volume Weighted Average Price the 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

14 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 Afternoon, below VWAP: Selling pressure on stock Retail traders can go short

15 Open: Move above VWAP: institutions are buying or covering their short. Retail traders can go long with ORBU. Late morning: institutions are dumping shares Afternoon, below VWAP: Selling pressure on stock Retail traders can go short

16 Late morning: institutions are dumping shares Late morning or Afternoon, False Breakout! Afternoon, below VWAP: Selling pressure on stock Retail traders can go short

17 How I Use VWAP for Day Trading a. 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)

18 VWAP: Powerful profit target or stop loss for other strategies Stopped out above VWAP Short

19 VWAP: Powerful profit target or stop loss for other strategies

20 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.

29 2. VWAP False Breakouts Stocks 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 Strong Trend Established after VWAP Go short

31 May TGT False Breakout VWAP False Breakout

33 May IONS False VWAP BreakOut

38 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 Stocks Opening Range Breakouts ABCD Pattern / Reverse ABCD Pattern VWAP Trading VWAP Reversals VWAP False Breakouts VWAP Moving Average Trends Low Floats Stocks

46 Summary Mid Floats Stocks Opening Range Breakouts ABCD Pattern / Reverse ABCD Pattern VWAP Trading VWAP Reversals VWAP False Breakouts VWAP Moving Average Trends Low Floats Stocks Bull Flag Fallen Angel Low float Float (~less than 20 million) Medium float ( million) Large float (+500 million) Price Range Under $10 $10-$100 (my favorite!) Any (usually +$20)

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

47 Thank you! Questions? me: My book is free today and tomorrow (May 24 and 25 th ) to download on Amazon.com

48 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)

Day Trading Strategies. Day Strategies. and Examples. & Risk Management COPYRIGHTED MATERIAL: ANDREW AZIZ (C)

Day Trading Strategies. Day Strategies. and Examples. & Risk Management COPYRIGHTED MATERIAL: ANDREW AZIZ (C) Day Trading Strategies Day Strategies and Examples & Risk Management ANDREW AZIZ SESSION 4 Disclaimer BearBullTraders.com employees, contractors, shareholders and affiliates, are NOT an investment advisory