day four let's get straight into it vop is a one tool that's help you predict almost every single major move of 2024 if you're not using it yet you're missing out one of the best edges in the market but not just vwap I also use an EMA that me and my partner Ellie who will be teaching you in this video as well both use to maximize our profits and lower our risk so that being said let's get straight into vwap I've been using vwap for years now and it truly is the best indicator in my opinion so let's get straight into it okay so as you guys can see first off I want to go over what is vwap the vwap is the volume weighted average price and it shows the average price of the stock adjusted by the volume vwap allows you to trade with low risk High reward and it's usually a huge intraday pivot but I use vwap a lot differently than other people used vwap let me simplify it for you guys vwap think about it as this you know how when you enter a position you have your average price vop is everybody's average price combined into one so it's basically the average trading prop of the stock the average trading price the stock for that day so say vwap is at 100 and the Stock's at 101 that means the average trading price for the stock is 100 that helps you a lot because now you know okay if the average person's in the stock at 100 then at 101 they're probably going to keep holding but if it goes back to their entry people typically buy more so maybe I could trade a bounce off of it or a retest off of it we're trading of other people's psychology and like another thing is like for example usually when somebody goes from down a lot to then even they'll get out because they like oh I'm not going to risk it right when we get that re we we view it as a retest we could see their entry due to vwap we view that as this is a bearish retest let me enter puts so there's two ways like to trade vwap and they do have to go pre-market levels as well which we're going to talk a lot about tomorrow the exact entries and exits in a lot of these stocks so let me get just give you basic overview of vwap there's two ways like to trade vwap a bullish vwap bounce or a vwap reject a bullish vwap W bounce is when a stock is over vwap and over premarket High and the trend is bullish meaning we're going to the upside since we're above pre-market High we want to wait for it to dip and we want to see volume at vwap once we see the buyer start to buy it off off vwap once we start to see a little bit of green off vwap is when we want to enter our calls so as we can see this is our pre-market High we're above pre-market high and vwap is above pre-market high so right here we come this is this is purple line is vwap I personally like to make my vop yellow but this purple line is vwap as you guys can see right here we come down and bounc right directly off vwap my entry is right here off of vwap as long as we're holding vwap I like it I like it here I wouldn't have taken ex I didn't tap it but here for example I'm taking calls because we're right off of vwap we do that every single time so let's go over some more here we go on cues we have our pre-market high right pre-market High next we're above vwap ripping ripping ripping vwap retest calls another retest of vwap calls you want to eat up these dips to vwap these dips to vws are very good entries so again all you do guys is when the stock is above pre-market high and it goes and it comes down and tests vwap this is your entry for calls this is where I like to buy calls it's a bullish vwap bounce another great example we have our pre-market High we're above pre-market high and we don't get any retraces until finally we get a bounce off vop and isn't a coincidence that's literally the exact bottom we bounce directly off of vwap guys we're not guessing we're not guessing there's a math behind this there's a reason that I'm picking vwap it's because it works it works look at these bounces look at these retests off of the line so now let's go over it to the downside so a vwap reject is when the trend is bearish and your technicals are indicating to short Pops that means we're 5 minute close under pre-market low the stock is weak and we're looking for a retest to buy puts we want to wait for the stock to bounce a vwap and if we see some Wicks start to come in so remember guys Class 2 Wix we see Wix start to come in we're going to buy some puts so right here vop retest under pre-market low boom We Buy puts again we're under pre-market low right here we get a retest of vwap twice and isn't that crazy the best possible entry of the whole day right off of vwap and then we dump for the rest of the day again right here we have our vwap our yellow line right our yellow line we're under pre-market low as we can see we're under pre-market low what happens we dump we dump we dump we dump we start to bounce most people just guess they think oh I'm just going to buy here I think it's going to start going down here or they think oh I'm it's definitely going to start to dump here we don't guess no that's the one thing you shouldn't do is front run it or guess or do something stupid like that wait for it to hit your entry we we don't guess what happens we get a vwap retest so what are we going to do we're going to buy puts right here off of vwap which is what I did then we go right back down what happens we get another vwap retest what are we going to do we're going to buy puts again and then we get another vop retest it just keeps on giv then we get another vop retest and then you guys see how all these retests have something similar they all have Wicks the the one that doesn't have a wick is the one that it bounces off of so you always want to look for that Wick that Wick is very important and you want to look for it just to start forming so you want to start seeing it go like this before you enter that's going to help you a lot those Wicks so and you may ask so PB what if when do I get out when I'm trading vwap you want to get out when the stock get if a stock closes above vwap so you guys see out here wickoff vwap wickoff vwap wickoff vwap so if you to enter if you were to enter the puts right here you would have gotone out on this candle since we went above the vwap so you just get out on the five minute candle above above vwap let me show you guys some more so it's always a five minute time frame guys so for example right here another vop retest wouldn't have taken this right here but once we got that Wick we could have taken it and boom so let's look Bish vop bounce off Tesla right here um um Amazon I mean guys this doesn't get more A+ than this right or wrong I'm I'm like I'm just pulling up charts and look at this vwap bounce number one we're above free market High we go right to vwap oh shoot that was the wrong thing but anyways we're above free Mark High rate the vop bounce look at this guys most people are going to guess when to buy they're going to guess what to buy they're going to guess what to buy they don't know what to buy they're going to keep guessing instead we wait for it to come to vwap we buy calls off vwap and we look at that look at that it's insane it's insane we're not guessing we're trading a system the vwap system this indicator works we bounce directly off of vwap this yellow line and I want to show you guys also my vwap settings because I get so many questions about this so as you guys can see this is what I use in my vop so I don't know what you guys how you want to copy it or whatever but this is my vop and I make it the yellow line I only use the middle band only use the middle band so let's look at let's try and find an example where vop would have lost I guess right here so you would have probably taken calls around here and you would have gotten stopped out right here that's it small loss you would have lost 50 cents and if it have won you would have won a couple dollars easy but look at this the day before you would have won three times off vwap one two three isn't that crazy hope you guys understand how vop works it's simple and there is one rle I need to go over guys there's one rule I need to go over and I want I'm going to this needs to be nailed into your head never buy puts when a stock is over vwap never buy calls when a stock is under vwap and vwap bullish retest work when the stock is over premarket High vwap bearish retest work when the stock is under pre-market low remember this guys remember these rules you never buy puts when a stock is over vwap never buy calls when a stock is under vwap vwap bullish retests work when the stock is over premarket high and vwap bearish retest work when the St stock is under pre-market low so there's a little bit on vwap I'm going to give it to Alli let him go a little bit on vwap and the EMA and then back to me okay so PB explained vwap but now I want to go into the 9 EMA so I'll give you a little background I am an EMA Trader that is why I like to trade and this is is my specialty so what is the 9 EMA so the EMA is an exponential moving average okay so you'll see a lot of times you'll see things like the 50 ma which stands for just moving average and why do we use EMAs over ma it's very simple it focuses more on the current candles forming and if we're day trading do we care about the current candles or do we care about the candles in the past the answer is is we care more about the current candles it's more accurate okay and we only care about the current price therefore we don't use moving averages at least for day trading right if you want to talk about you know dailies all that that's way too complicated let's just focus on the EMAs so something that me and PB both love is to make rules how often in your trading Journey have you thought to yourself well I need trading rules I don't really have any rules I just kind of go with the flow well we already talked about the vwap rules so now we're going to add one more layer to it and that that is going to be the 9 EMA so if you want to trade like PB where myself the 9 EMA is this red line right here and I will show my settings in a little bit so rule number one this is the bull rule okay this is when the stock goes up and to the right you can see that we are above vwap okay so check mark and above the 9 EMA and the stock is trending up into the right very simply we are going to buy calls here we're not going to buy puts why because if you keep trying to buy puts you're just going to keep losing money every single candle and you're going to have a bad time think of trend as probability if the entire Market is going up and to the right you off your phone or on your laptop is not going to beat Wall Street at their own game they always win next let's talk about rule numero two okay bearish EMA so you can see we're below vop and we're below the9 EMA that means price is going down to the right we're going to buy puts here if the market is selling off you do not want to be buying calls here over and over and over again remember don't step in front of a moving train trains fun fact actually take about a mile to stop okay price when it's crashing takes days to stop you'd rather be late than wrong and then lastly rule number three is chop equals no Trend where I call this the Gucci snake rule okay so how many of you have seen the Gucci snake right whether it's on a wallet on a belt something like that it kind of looks like this right and that means that the EMAs and VW or just kind of crisscrossing all over the place and that's no fun to trade because you're going to go long get stopped out you're going to go short get stopped out and I've seen Traders over the years lose tons and tons of money trading chop we do not trade chop okay so you're going to buy calls here you're going to buy puts here and then chop you're going to we can just cross out Trend and we can just write no trades you're going to sit on your hand and wait for a better day now I'm going to explain to you why we only trade on these big Trend days because you can make the most amount of money especially if you have a small account in chop you will not do that so here is my settings I'm going to go through all of them individually feel free to screenshot so this is the nine EMA settings you can see you set the the length to nine here okay and we just want to check this box for wait for time frame closes for the style we make it red you can also copy this in the free Discord as well you'll see that there's a red tab just have these little boxes check if you want and invisibility you want to be able to see it on all time frames that's all that it means I know PB went over the vwap settings but I wanted to actually show you a screenshot of all the tabs so no one has any questions so you can see here's the input no real changes there but a lot of times when Traders come to me and PB they have these bands here okay get rid of these bands you just want this box checked right here and then for visibility you want it available on all time frames so feel free to screenshot this if you want and add it to your charts or just join the free Discord and you can click the link link okay so let's go over some chart examples so price opens in the morning and we're analyzing this we took the free course we realized oh okay well there's three rules so a stock is either above all the EMAs below all of the EMAs or it's forming what we call the Gucci snake so I'm just going to write Gucci so let's look at this so we can see prices let's say we were looking at entry around this area we can see it's above all the EMAs so we are going to buy calls that's it so you would enter calls here or over here and you would just ride the trend your stop loss would be is when it actually breaks down under the 9 EMA and there you go that's it so say you entered off of vwap here right you get your beautiful Wix as PB just explained you ride it up okay you got a little bit of a knife candle that's okay may stopped you out then you enter again and you just ride it up and your Runners get stopped out at the 90 ma okay you can see that sure we're under okay the 9em here but we're still above yop so if you tried to short this into vwap you would have got screwed same thing over here and so forth very straight forward now let's look at a bearish example so we can see so say we're looking at Price here say you know it's forming like a be flag okay we know the three rules what rule is this okay it's look it's a below the EMAs it's below vwob so therefore we're going to buy puts and you can see you entered puts right off this 90 MAA test right here you made tons of money on the downside okay A Move like this on spy Zer days is probably you know two 300% you know that's probably two 300 bucks in your pocket with one contract just following this and you would stop out over the 9 EMA very simple so far now let's look at some more examples it gets pretty repetitive after you you've done this a lot of times okay we have those three rules we're either above or we're below or we're somewhere in between okay the Gucci snake Okay you can see here we're above theop we're above the 9 EMA and we trended all day so all we did on this day is we just bought calls and made money Lally all you had to do is buy calls on every single dip and you made money if you tried to come in here and short it on this candle you immediately got stopped out because you didn't follow the rules just follow the trend on a bearish day we actually started bullish years let me zoom in here so you can see we actually started bullish but if you remember from the Candlestick class we did what a bearish engulfing okay so this is not a valid EMA test and you can see we flipped back down bearish formed a little bare flag and then from here to here probably made like 30% and then again every pop to the 90 ma okay so here's pop number one number two three four five and just price kept going lower and lower so you just short every single pop oh there's another pop right here I mean it's pretty much infinite money glitch as we like to call it in the trading game but look all day you're just shorting Pops to the 90 Ma and you're making money but you notice how you don't buy calls here okay you're still below vwap vwap Okay the reason why we actually make a gold okay is because vwap is king So draw like a little RuneScape party hat if you know you know if you don't know it's all good but rebop is King remember this is everyone's average for the day we just use a 90 ma to get more precise entries if we do not get up to bwop prices below bwop the Market's heavy for the day and it fades all day now I want to show you an example of what chop looks like so you can see think back to our example up here so if I actually look up here we can see the Gucci snake pattern and we go down here we can agree that this looks like kind of a Gucci snake right we don't really want to be involved in this and lastly okay is I want remember one thing when it comes to trading is range okay what does range mean breaks a pre-market high or pre-market low will lead to Trend and trend is your friend Trend will get you profitable that's all I have a quick lesson on the EMAs uh feel free to take a screenshot of these settings everything you need and please please please follow these rules me and PB have taught many Traders when they come in they follow these rules and they their lives are change perfect guys well as you guys heard with Ellie that is everything with the EMAs vwap our system with the indicators and giving you guys a little bit of of what you need to know but tomorrow we'll be focusing on what is probably the most important class of all the days which is entries exits and risk management we'll be going over the system that took me from blowing accounts to finally growing from taking my account from 1,000 to 25,000 in 3 months adding up base hits literally we'll be teaching you guys everything you need to know from want to buy when to sell how do you know how to manage your risk how do you make trading not gambling so I'm super excited if you guys enjoyed subscribe like this video comment any questions you have you want to take your trading to the next level then book a free call below to see if you're the good fit and we'll answer your questions I'm super super excited and look and if you're not interested in that no worries just follow us subscribe and we're dropping tons of free game let's go