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Insights from Trading Q&A Session

Apr 17, 2025

Lecture Notes: Trading Q&A Session (April 17)

Introduction

  • Date: Thursday, April 17
  • Format: Q&A session covering various trading-related topics.
  • Host will use market examples to answer questions where applicable.

Key Questions and Topics

1. Deciding When to Take Profit or Close a Position

  • Example: Bought HUD after it reclaimed the Anchored VWAP from the August low.
  • Important factors:
    • Timeframe consideration.
    • Definition of trend: higher highs and higher lows above a rising 50-day moving average.
    • Avoid selling on a gap lower, give it some time.
    • Analyze patterns of high and low for exit decisions.

2. Prioritizing Daily VWAP

  • Question from Gita about prioritizing daily VWAP over week-to-date or year-to-date VWAP.
  • No single priority; importance lies in how they blend together.
  • Analogous to using colors in painting; blend technical indicators together.
  • Trend alignment: current S&P 500 trends are aligned to the downside.

3. Handling Market Reversals and Stops

  • Will's question on market reversals and being stopped out.
  • Understanding volatility and trend definitions.
  • Adjusting stops based on higher lows.

4. Use of Anchored Volume Profile

  • Question from Bruges: does not use Anchored Volume Profile.

5. Indicators like MACD

  • Jan's question about using MACD.
  • Preference for price, volume, and time over indicators like MACD.
  • Encouraged to use any indicator if it provides an edge.

6. Trading Platforms for Crypto and Stocks

  • Platforms used: Gemini for crypto, Thinkorswim, Fidelity, Interactive Brokers for stocks.
  • Charting mainly through TC2000.

7. Moving Averages and Timeframes

  • Discussion on crossover significance on various timeframes.
  • Short-term timeframes for trading decisions.
  • Use of VWAP in day trading strategies.

8. Anchored VWAP Strategy

  • Questions regarding the application of Anchored VWAP.
  • Importance of trend alignment and timeframe analysis.
  • Anchored VWAP used to identify support/resistance levels.

9. Establishing Trading Rules and Discipline

  • Importance of having rules to remove emotion from trading.
  • Strategies should be consistent across varying market conditions.

10. Identifying Trends with Anchored VWAP

  • Question from Harry on using Anchored VWAP for swing trades.
  • Focus on trend alignment and proper entry levels.
  • Importance of observing past patterns and market behaviors.

Conclusion

  • Emphasized the art of trading and understanding multiple timeframes.
  • Encouragement to observe and learn from real-time market actions.
  • All user questions addressed; advice to use AI for technical inquiries and exploring educational resources.

Note: This document summarizes a Q&A session with various trading-related queries answered, incorporating real-life trading scenarios and technical analysis insights.

Full transcript