How to use anchored VWAPs?Short Video on how to apply and use anchored VWAPs for you day trading, to assess higher timeframe bias and if buyers or sellers are in control.
Anchoredvwap
UROY an energy penny stock LONGUROY basically sells rights to mine uranium for a percentage of the production. It is a penny
stock in the nuclear subsector of energy which is undergoing a renaissance in this era of
fossil fuel addiction detoxification in the context of climate change remediation agendas.
The 240 minute chart shows a parabolic move in mid January followed by consolidation
and capitulation into a double top all at about the first anchored VWAP line above the mean
followed by a trend down into the present level near to the first lower VWAP line.
I will take a long trade here targeting the mean VWAP confluent with a standard Fibonacci
retractment which is the green line on the chart. $.05 is taken as a safe stop loss at the lows.
The target is 0.40 upside yielding a R:r of 8. I have positions in URA and UEC at this time.
The entire uranium subsector is cycling from warm to hot again.
MHUA Chinese Med Tech Penny StockMHUA is shown here on the daily chart. It is currently trading at about 90% off its high of the
year. It is in the high volume area of the long term volume profile suggesting there is sufficent
liquidity to support active trading. Recent volume spikes suggest buying volume increases with
the spikes being about 10X relative volume. Price is over the POC line of the volume profile
demonstrating that buying pressure exceeds selling pressure. Price is at or near to one
standard deviation below the mean anchored VWAP and so in the undervalued area as
confirmed by the RSI Stochastic < 20 %. Chart patterns include an engulfing " big ass " candle
on 5/1 and a three-bar strike with another engulfing green candle on 5/12. Both of these
could be considered long entry signals especially when supported by the price above the POC
and the RSI. I will take a position risking 0.25% of the trading account to begin the trading
week. I am targeting a gain of $15.00 per share being a 50% retracement back to the high
YTD and a 300% return on investment. I will take a 100 share position and close 10 shares
each time the price rises by $2.00. This will adequately mitigate the risk of a volatile penny
stock while adequately rewarding the risk taken.
LCID Anchored VWAP based swing trade LONGLCID on the 15 minute chart is shown with two sets of anchored VWAP lines overlaid being set
at the pivot low of April 22 and the pivot high of May 6th. LCID completed a trend down today
which began on May 6th. Price has reversed and is breaking up through VWAP band lines on the
chart. The faster green RSI line has crossed over the 50 level in the past trading session. Price
is now about to cross over the longer mean black VWAP line. I am taking a long trade here
targeting 2.88 for 25% of the position, 3.10 for 50% of the position and the reminder for a
runner position to extend for the uppermost band lines. The first two targets are based on the
intermediate VWAP lines as well as the upper and lower boundaries of a standard Fibonacci
retracement. The stop loss will be raised incrementally from its initial setting of
2.74 at the top on the EMA cloud. As the trend down took a few weeks. I am expecting a 2-3
week long trade following a projected trend up.
USO is in a sweet spot on its chart LONGUSO while the middle east, the Houthi rebels and the Suez Canal shipping quagmire affect
oil liquidity globally and prices at the pump continue to be volatile the federal government
seeks contracts to restore the national strategic reserves depleted in the last supply demand
challenge while the presidential and congressional election cycle starts warming up.
On the weekly chart, USO has just crossed over the long term anchored mean VWAP line
as well as the POC line of the volume profile. This is a bullish momentum move. Price is
situated in the middle of the high volume area showing expectations of decent trading volume
and liquidity. I see this as an opportunity to take long trades in oil or anything oil related.
CVX is on sale after a drop after the morning open. i will look at oilfield services stocks, big
oil and oil futures.
TSLL is Telsa with a boost of steroids LONGTSLL is an ETF of TESLA instruments leveraged 50% - while TSLA has its own range
percent from its volatility TSLL does this even more at a lower per share price.
On the 4H chart, TSLL can be seen pivoting down in a VWAP breakdown from a high
about July 19th. It is now in deep oversold territory supported by the redline of the
second standard deviation line below the thick black mean VWAP. On the ZL-MACD,
the cross under the histogram and the ascent of the lines toward the zero line shows
in my opinion bullish disvergence. Upside to the target just below the POC line of
the volume profile is about 15%. I will go long taking call options as :
1. contracts striking $ 16.00 for an expiration of 8/25 and,
2. contracts striking $ 17.00 for an expiration of 9/1.
I am anticipating overall profits of 100% as a goal in this trade. I avoid time decay
and in risk management I will close a position when it hits 100% or not less than
two days before the expiration. Good luck on this trade if you take it. DYODD !
XNGUSD SPOT NATURAL GAS Slowly getting ready to reverse LONGXNGUSD is here on a 120 minute chart. I can see that it is trying to turn the corner and head up.
The RSI is turning up in bullish divergence. While price is below its moving averages, the SMA20
is soon to be in reach. The anchored VWAP lines are approaching a slope decreasing to zero,
while price is getting closer to the mean VWAP as those lines go flat. Overall, volumes are
on the rise while price is sideways, so there is bullish divergence in the volume trend.
Overall, I see XNGUSD setting up for an uptrend. It could be a big one. Time to buckle up before
turning the key. there may be some horsepower involved.
LCID falling down on weak revenue LONGLCID is in a falling wedge pattern again on the 30 minute chart. Eventually it will break out over
the pattern. It has been in a simlar pattern in the recent past. This is now basically a tall bear
flag in its consolidation portion. While price could go even lower, reversion to the mean says
that it will retrace. The Fib tool suggests 3.35 over an intermediate term. LCID has a rich
uncle in Saudi Arabia and its wealth fund. Most certainly, they will accumulate heavily at this
price level. Shorts will buy to cover once there is a saturation of buying and price action
follows in keeping with Wychoff's theory. The mass index has signaled a reversal. I will dip buy
this like the SA traders and add to the position once some bullish momentum is seen.
XBI the ETF for Biotechnology LONGBiotechnology is expected to be a hot subsector this year as healthcare recovered further from
the COVID pandemic anything from startups to big pharma- from vaccines to new drugs for
diabetes, liver disease and obesity. This is shown on a weekly chart to show the long term trend
with XBI pivoting to bullish back in early November. I add long positions when I see a dip
on the 3-4hr chart. My targets are the fib retracement expectation at 116 confluent with
the first upper VWAP band line and then the 135-138 zone underneath the second upper line
shown in thin red on the chart. This ETF smooths out the volatility characteristic of some
of the smaller biotechnology firms making it safer albeit with lesser rewards expectations.
Positions in NVAX and MRNA are having a good start to the week and will reflect in a small
way in this ETF which has broad constituent stocks within its portfolio.
PYPL Momentum Stalls REVERSAL / SHORT idea PYPL has had a great past two weeks putting in 7-9% gain. In the past week however, that
momentum has stalled. PYPL has printed a head and shoulders pattern. The predictive algo
of Lux algo suggests a reversal here. PYPL has been resisted on the higher price action
by the second upper anchored VWAP band. The H & S pattern neckline is about 63.
The predictive algorithm of LuxAlgo shows a forecast of downward price action as shown on
the black line to the right of the last candle.
I will close my long position here. Once price falls under 63, I will instead take a short
position targeting 61.35 and 59.35 being the area immediately above the mean VWAP
and first lower VWAP lines respectively. I will also look for the green RSI line to fall under
50 as an entry signal. In keeping with good risk management, the initial stop loss will be
63.15 with an adjustment of 0.12 for every 0.15 of price fall until the first target. I will take
off one third of the position and adjust the stop loss by a trialing ATR after that.
Anchored vWAPs to Define Value Channels of Reaction ZonesIn this video I share a simple TA method I use when I've identified two significant levels.
For this example we're using the anchored vwap from both the most recent significant high and significant low.
Once we have those defined and price begins to trade Within These two levels I like to draw what is called a value Channel.
A value channel provides me with areas on the chart that are high probable reaction areas. the trade system I trade I look for reaction areas and I trade around them.
we see in this example that the rejection happened at a significant area of this value channel and if price continues down I share where the next reaction area will be where we'll look for Price support.
I also add to the chart and indicator called RD Key Levels . these are key levels that the market uses for reaction areas in just about any day one Trader should know but it's great to have them on their chart.
I bring this up because it does appear that BTC is reaching for a weekly open test. that would be my target on this trade and would be the highest probable reaction area I'd be looking for.
If anything wasn't clear please ask questions and I will provide answers or a quick update.
SPY persists with bullish bias LONGSPY on a daily chart shows rising VWAP lines and price with the RSI indicator showing strength
above 50 since November and presently in the 65 range and so not yet overbought. Volumes
are near to the running mean. Price Momentum and Relative Trend indicator are more or less
flat but are positive. The mass index indicator does not show a reversal pattern. I conclude
that SPY is still in range for long trades including call options.
TQQQ Tech 3X levarged ETF LONGOn this 15 minute chart, TQQQ is in an anchored VWAP band and volume profile breakout.
Near to the end of the regular market, the RSI indicator ran from deep oversold. After hours,
NVDA reported a sizable earnings beat. The AI machine learning and backtesting indicator
forecasts and uptrend continuation. I will get call options targeting $58 for Friday's expiration.
This is a risky play, price trend could reverse and there could be no time left to recover from
that reversal. The rewards for the trade going right could easily exceed 100%.
SOUN a small cap AI stock ready for a VWAP reversal LONGSOUN on the 15 minute chart as fallen again to the anchored mean VWAP. Each previous
time this has occurred in the past month, price has bounced into the second or third upper
VWAP band line for a bullish momentum move. The mean VWAP is where big players like
to pick up and drop off shares. Liquidity is at the highest. Teh Relative Trend Indicator will
show best entries where the trend is negative but the returns to the chop zone to climb
out of it and go positive. This indicator can function with alerts and notifications. SOUN
uses AI and voice control of it to make apps more user friendly and potent. A similiar stock
is DuoLingo ( DUOL) which also adds language translation into the functionality. Those on a
budget in their trading love the price. Those not on a budget make love the volatility and the
quick profits it can bring if traded properly.
NFLX set up for a dip buy before the next earnings LONGNFLX has added 20% to price in the two months since the last earnings which were decent
but not remarkable. The 2H chart shows a dip of about $20 per share coincident with a fall
from the second upper VWAP line to support from the first upper VWAP line. The zero lag
MACD shows line rising over the horizontal zero level in perhaps a sign of bullish divergence.
The lines are now over the low amplitude histogram. I will take a long trade here targeting
$650. Recent news is the CEO sold 20,000 shares out of the 12,000,000 that he has control
of. Nothing unusual there. His friends and others ( myself included) may be buying the dip.
KHC approaching VWAP and looking to rise higher LONGKHC is a consumer staples, not a high flyng tech stock. Content to grind out a trend and take its
time, it now looks to rise from sideways action since the last earnings. It is approaching the
anchored VWAP where the big players sit waiting to pick up shares in the high volatility and
volume zone and so earn a living from other traders who are not as savvy. Rising relative
strengh supports a long trade here as does the Price Volume Trend. I find some balance with
slow and easy swing trades to offset the chaos and volatility of the IT/ AI /Technology sectors.
ESPR a penny and medtech stock LONGESPR on the 120-minute chart is surging with momentum from an FDA approval for a new
cholestrol and lipid medication which will be an alternative to the at statin class which has
side effects and can cause diabetes. I am familar with a few of the professionals on the
science advisory board they are researchers and academics of the highest claiber. The chart
shows price testing and getting support from the mean VWAP and a little bit of resistance
from the first upper VWAP line. I have added to my existing position at the consolidation at
VWAP. I am well informed on ESPR market prospects; this could be disruptive.
The dual time frame RSI of Chris Moody has curled up and validates the idea. My interim
target is the double top of this past winter. I do expect increasing volume in time with the
price action that follows.
Disclaimer This a hot penny stock highly volatile - you could lose on this trade. Do not trade
with money you cannot afford to lose. You must manage the trade well to realize profit.
There are options if the put to call ratio is rising big money is pushing a reversal
EXK will run as long as silver moves higher LONGEXK is a junior miner. With fixed expenses in its mining operations for the most part, margins
rise dramatically when silver is rising and the opposite is likewise applicable. This is the crux
of using junior miners as a means to profit from trending in precious metals. As a penny stock
EXK has hieghtened volatility as compared with Barrock Gold or the GLD ETF. there are other
junior miners. EXK has added 40% to its market cap in two weeks. Until the momentum of spot
silver fades, EXK will continue its momentum. I will add to my long position here and fortify
the call option position as well.
EURUSD set up to rise from dynamic support LONGEURUSD is currently sitting at the price level from which it reversed in mid-December as
well as mid-February. Price is at the second lower anchored VWAP band line which adds
confluence to the support. From here, price should move toward the mean VWAP.
Upside to the target mean VWAP is about 1.25%. The RSI indicator shows weakness and
an undervalued / oversold condition.
The predictive algorithm based on lookback regression line analysis suggests a move up
to the first upper VWAP line at 1.0954.
AUDUSD cleared mean VWAP in bullish momentum LONGAUDUSD as shown on the 30-minute chart has crossed over the mean VWAP anchored back 5
days. From here I expect a move toward the upper first and second VWAP lines and so will
take a long trade targeting 0.6535 initially ( aVWAP+1) and 0.655 for the higher target ( aVWAP
+2) The stop loss will be under the mean VWAP at 0.6515.
CZOO moves up on the pre-earnings interest LONGCZOO shown on a reliable daily chart had an earnings report beating the estimates back in
November whereprice action trended up then down in January followed by sideway action
then finally a break out through VWAP band lines and the entirety of the high volume area of
the profile. Ahead above is a volume void where price moved quickly coming down..
On the retrace, price can move through the void just as easily.
The indicators show the volume pump and corresponding Price Volume Trend going exponential
My first target is 23 about 90% upside - it is the line between the lows of the bottom wicks of
Doji candles on 11/17 and 12/18/23. The stop loss is 12.6 just below the upper
boundary of the high volume area. Once the price gets over 17, the stop loss will be
converted to a trailing $2.00 stop loss and the risk free trade will continue higher.
At the first target 50% will be realized and at the second another 25% while the remaining will
be left to see if any momentum remains. The final target is 43 being the high pivots of early
December 23 and the consolidation high volume area of October 23. the rest will look for the
momentum fade while the stop loss is changed to trailing $1.00.
This is potentially a 3-4X profit trade using alerts / notifications/ limits and stops.
There will be very little screen time or effort in the management.
USDJPY set up to fall to VWAP support SHORTUSDJPY has been in a narrow range consolidation since a one week trend up from March 14-20.
The dual time RSI indicator shows the faster green RSI line under the stable slower RSI line
showing some bearish divergence. The predictive also's blue line forecasts a slow downturn.
I am taking a short forex trade on USDJPY expecting price to fall into the support of the
mean VWAP at 150.638. This is about a 0.67% move to be leveraged for a modest profit
considering the risk taken. The stop loss is 151.9 just above the higher first upper VWAP line.
NGD - a gold mining penny stock is bullish LONGNGD on the highly reliable monthly chart has signs of bullish momentum including a cross over
the POC line of the volume profile,a monthly volume bar over the running mean for the first
time in two years price crossing over the mean anchored VWAP and both the trend and
the momentum indicators making reversals. I will open a long trade of both shares as well
as a lot of call options for mid- November striking OTM at $ 1.50. This junior miner
stands to gain earnings when gold prices rise proportionately more than established global
mining operations. My target is 3.5 just under two standard deviations above VWAP. I will
take off 1/3 of the position at 2.7 at the first standard deviation above VWAP in best practices
for risk management.
