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Trading strategy 2021 esay trading with method

 welcome back to my channel everybody

thanks for tuning in and in this post
we're gonna go over a V day trading
strategy that I use I'm gonna break down
what V is what does it mean how is
it calculated and how can we use it and
add it to our trading arsenal to form a

strategy or even a system behind it now
this is gonna be a really good 
lesson so if you haven't subscribed yet

hit the subscribe button smash the like
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below definitely worth the follow as I
post daily trade recaps I post some good
options trading and psychology tips and
tricks so without further adieu let's
get right into the video so V WAP stands
for volume weighted average price and
there's a calculation behind it it's
important for you to understand the
meaning behind it and how it's
calculated rather than calculating it
yourself you know with a calculator near
you or a spreadsheet because your broker
is going to have a V whap indicator most
likely in their charting platform and
it's going to do it automatically for
you and it's gonna display it with a
line so view up is calculated this is
important to understand buy shares
transacted times the share price in the
dollar amounts divided by the total
shares that were traded for that period
and this is best used as an intraday
indicator or you could make a strategy
around it and I'm gonna explain to you
the strategy that we use behind it so
shares transacted times the share price
in the dollars so if somebody bought a
hundred shares at let's say $300 that is
the first part of the equation and you
have to divide it by the total shares
that were created like I said your
broker is going to do the equation for
you but it's important to understand how
to use the view while so V WAP can be
used to see how efficient price is it's
safe to say when the market or a stock
is trading above v WAP it's a bullish
sentiment or a bullish move and if the
market is bearish it's most likely that
we're gonna be below view up the reason
because of this is it's a volume
weighted average price if price is
trading below the weighted average then
obviously we're a below average and
price is in favor to the Bears and if
we're trading above it the average price
then the market or the price is in a
favor to the Bulls now view up also can
be used for liquidity purposes it's a
very liquid area it's an area that is
basically a average price and that's
where institutional traders will be
looking to trade for basically a fair
value and this is called the regression
to the mean if a stock is moving up away
from fair value and the stock then pulls
back into fair value to pick up more
orders for liquidity purposes then that
is going to be a safe place that
institutional activity is going to be
around because this is a fair value to
them and this is where price makes sense
because it is an average weighted volume
compared to price so the first strategy
that I want to get into is the V watt
bounce but first I'm going to introduce
to you guys how to add view up to your
charts on thinkorswim
now if any charting platform most likely
there's gonna have a V WAP study because
there's a very popular indicator and
it's basically true to price and volume
which in my opinion it is what matters
the most with trading and with any
strategy so on thinkorswim or any other
platform charting platform go to your
study section where you add indicators
and in this case I'm thinking swim go to
studies quick study go to all studies at
the top scroll down to view up or scroll
down to V and then the top is going to
be V wah now you're gonna click view op
and now you're gonna see a bunch of
different lines and we have to remove
some of these because in my opinion it
is too much noise and the upper band and
lower band does not matter the only
thing we care about is the middle band
because that is the average that is the
middle price and that is the view of you
op line so all you have to do is right
click the study hit edit study view whap
you want to keep all of these studies
the same make sure it's on a day time
frame your deviation down is - - and
your deviation up is positive - that's
standard and then go to upper band over
here take the upper band off take the
lower band off and hit apply and the
only thing that we care about is
the purple line you could change your
preferences to color whatever we care
only about the middle line and we only
care about it on an intraday chart we
don't care about it on a daily chart
because it does not really mean anything
to us
any intraday chart 5 minute 15 minute 30
minute the price is going to be the same
you know if you look on a 15-minute
chart there's not going to be a
difference in price and volume as you
would see it on a 30 minute so the
number is always going to be the same
because the calculation is always going
to be the same so the Viwa bounce is
when a stock is above view op and we get
a pullback into view op now like I said
you can use a other strategy around this
and have V whap on your charts as extra
confirmation so in this example we had a
30-minute demand zone down here that
formed in the morning fast-forward to
the end towards the end of the day price
was above view op and we pulled back
into the purple middle v whop line and
then bounced from there to a strong
rally at the end of the day this was
confluent with a 30-minute demand zone
and the V watt bounced so we had two
different indicators we had two
different strategies or entry points
that we could have based this trade off
of and we basically got double
confirmation because we had two
different things telling us that Christ
had it this was an area where price
could easily bounce at so when I see
demand or supply hitting AV wops own
that's going to give me extra
confirmation to take the trade now
here's another example when price is now
above view op we pull back into the view
op line and when we see it start
bouncing now you could look on a 1
minute 5 minute 15 it's still going to
tell you the same story view op is going
to be in the same area you could take
the trade where my yellow circle is once
price is coming up up up you could take
the trade once you get confirmation
higher high higher low whatever the case
may be putting your stop-loss below view
op or putting your stop-loss maybe even
below the wick in this case you know you
could have put your stop-loss
right here where my cursor is at now
look at this so the first 1 2 3 candles
we had a rally then we started
consolidating sideways and then another
rally up look how close we were hug
Viwa when I see a consolidation point
near V WAP like this and we're hugging
it you know like a blanket hugging it
closely and tight this is also forming
new demand as we are hugging v WAP you
could take this to the long side putting
your stop-loss
you know below that low and then this is
now that same chart right here this is
the same chart on a 15 minute now look
at these three candles right here these
three candles look exactly the same as
the first three candles on a five minute
and now on the 15 minute chart these
three candles is when we were hugging v
WAP a different time where we saw it on
a five minute that looked completely
different okay we rallied up then we
based on view op we bounced off it once
twice three times lower wick on a
smaller time frame you would have seen
that bounce you could take it long on a
smaller time frame with confirmation to
the upside putting your stop-loss below
this low or however depending on your
risk management plan now this is on
Apple again this is a five-minute chart
price rallied pulled back reverted back
to the mean reverted back to the average
price fair value and this is where
buyers stepped in and we took it for
another leg higher for a nice rally
throughout the whole rest of the of the
day now here's another example how you
could use vo up as it bounced or as a
bullish indicator so this is on Amazon
and V WAP you have to look at the trend
of view WAP it's either gonna be
trending up or trending down in this


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