Transcript for:
Mastering VWAP

in this video we're going to show you how to master one of the most effective trading tools which is the vwap please hit the like button but more importantly hit the notifications Bell so that you know exactly when new content is released so let's dive right into it starting with the vwap basics vwap stands for volume weighted average price and is different from a traditional moving average as it takes volume into account so to access the anchored VAP on your left left under projection click anchored vwap then on your chart click where you want the vwap to be applied from and you'll see it overlaid on your chart the middle line here is the vwap line when price is above the vwap line it signals a bull market and can also act as a form of support and presents long trade opportunities if price breaks through the vwap it can signal a possible Trend change let's show this again price price being above the vwap line and making higher highs signals a moving uptrend on the way up you had multiple entries at the vwap line entry one through the very long wi candle entry two through the long Wick candle entry three through the very longwick candle and candle color change entry four through the two inverted long with candles again multiple long entries at the vwap line then once you had a clean break through the vwap line and lower low this signals a possible Trend change downwards is coming you had a falling wedge pattern followed by a break above and higher high which is your trigger event and gives you a bullish bias and is the start of the fresh uptrend this here is the actual start of the uptrend so that's where you would put your vwap Anchor Point price then forms a falling wedge continuation pattern followed by a bounce off of the vwap line which presented a continuation long entry once price broke above the pattern and made a higher high you would take a long continuation entry through the lower intraday time frames going in the opposite Direction price being below the vwap line signals an overall bearish Market the vwap line also acts as a form of resistance when price is below it if price breaks cleanly through it signals a larger Trend change is coming if you want to use the exact charting platform we are using it's linked in the description [Music] below let's now get into the strategies section strategy number one vwap combined with key [Music] levels like all indicators you shouldn't use the vwap on its own you should always pair the vwap with price action methods you have a strong moving uptrend so you want to trade with the trend these reversal points give you a key Zone price then pulls back and forms a long with candle right at the key Zone and the vwap line presenting a long trade opportunity trend line placed above connecting the highs and once price broke above the trend line and made a higher high this signals the pullback is over and that the next leg of the uptrend has begun and is then when you would go to the lower intraday time frames to find a long entry point let your list again you had three bounces off of this Zone which shows this level held strong giving you a bullish unconfirmed bias price then took off upwards and made higher highs and higher lows which gives you a confirmed bullish bias and you want to trade with the upwards momentum this point here is the start of the moving uptrend so that is where you would set your vwap Anchor Point these reversal points give you a key Zone price then pulls back and forms multiple long with candles right at the key Zone and the vwap line presenting a highquality long trade opportunity trend line placed above and once price broke above the trend line This signals the pullback is over and that the next leg of the uptrend has begun and is then when you would go to the lower Inay time frames to find a long entry point now you also had a second entry point here this reversal Point gives you a key Zone some Traders would have entered right at these long with candles here vwap Traders would have entered here through the very longwick candle forming right at the vwap line and key support Zone that is also a double bottom pattern at this point trend line placed above and once it broke with a higher high look for a lower time frame continuation long entry point now going in the opposite direction you have a strong moving downtrend with lower highs and lower lows so you want to trade with the trend this point here is the start of the moving downtrend so that is where you would set your vwap Anchor Point this reversal Point here gives you a key resistance Zone price then pulls back and forms a very long with candle right at the key resistance Zone and vwap line presenting a high quality short trade opportunity once you had an intraday Trend change confirmation you would look for a short entry point let's now bring in the usage of multi-time frames to find that intraday Trend change confirmation for earlier entry points before we continue we want to hear from you tell us in the comments below right now what video topics we should cover next as always please hit the like button as it allows for our team to continue to produce more free videos on YouTube you had an RSI Divergence followed by a break below the key Zone and lower low showing a trend change from an uptrend to a downtrend this gives you a bearish bias so you want to look for short entries to trade with the fresh downtrend and bearish momentum the start of your downtrend is here so that is where you would set your vwap Anchor Point price then pulls back to the key Zone and vwap line and forms a long with candle showing a reaction to the area of Confluence and presented a short trade opportunity as always a reaction does not equal an automatic short trade as price can stall at the area and then still continue on upwards that's why you need a trend change confirmation to Signal the pullback is over and that the next leg of the downtrend has has begun so one Trend change confirmation is to wait for this lower low to form before taking a short entry but now if you want an earlier entry point up here you need to use a lower intraday time frame to look inside of this area for any form of price action that signals a trend change from an uptrend to a downtrend and that validates your short trade setup is real and not a fake out so let's pull up a lower intraday time frame and put it beside this one on the left is the main time frame we just looked at and on the right is the same asset but using using a lower intraday time frame your trade setup area here is this same area here now on the lower intraday time frame you can see the actual swings of price of your moving pullback which allows you to place a trend line like this once price broke below the trend line This confirms the pullback is over and that the next leg of the downtrend has begun and as then when you would go to the even lower intraday time frames to find an exact short entry point using our entry and exit strategy now if you used only one time frame you entered here which is all the way down here but by using multi-time frames you entered short all the way up here which is earlier meaning more profit and more gains so moving on to strategy number two imperfect vwap and treating vwap as a general area you have a strong moving uptrend so you want to trade with the trend this here was the start of the move so that's where you would set your vwap Anchor Point this reversal Point gives you a key support zone now notice how price pulls back and forms a double bottom as well as multiple very longwick candles forming in the area of the vwap line and not bouncing off of it picture perfectly this is still a valid long trade setup as price is still reacting to the vwap line area and the key support Zone remember that the market is imperfect so if you wait for Picture Perfect buy the book trade setups only you'll miss out on 95% of the best trades trend line placed above and once you had a break above and higher high you would take a long entry through the lower intraday time frames let's show this again you have a strong moving uptrend so you want to trade with the trend this here was the start of the move so that's where you would set your vwap Anchor Point this reversal Point gives you a key support Zone price pulls back and forms a double bottom as well as multiple very long with candles forming in the area of the vwap line and not bouncing off of it picture perfectly the key support Zone also lines up perfectly presenting a highquality long trade setup trend line placed above and once you had a break above and higher high you would take a long entry through the lower intraday time frames now if you want access to a ton of advanced content that won't ever be made available on our YouTube channel go to yr.com don't forget to tell us in the comments below what topics you want us to cover next make sure to hit the like button on this video as it allows for our team to continue to produce more free videos on YouTube so thanks for watching and I'll see you in the next [Music] episode