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

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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