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Volume Weighted Average Price (VWAP)

Volume Profile and why you need it.Volume profile is an underused and quintessential part of trading, it tells you build up of orders, it tells you fair price, and it tells you where the majority of the liquidity is. You can see in this chart, I have taken it apart piece by piece to show you the basic mechanics and why price moves the way it does, now be honest, how many of you rushed into selling GU last minute because the price was collapsing? Well the funny thing is despite not being alone in doing so in the retail trading world, big banks and instituitions were already two steps ahead as expected, check the Volume profile, notice how it declined on a massively falling currency, what this is telling you is that the amount of exchanges is very low, as the shorters pushed price down they began to close positions, also what would have happened is the amount of retail money and money that isnt associated to high end firms would have started to see negative positions so what do they do? they have to close these sells with buys! so not only are the big banks taking profit, they are also using you as rocket fuel! as the masses of small money becomes negative/trapped/stoplosses, price reacts in an equal and opposite reaction, price rallies. So where is price heading too? it is heading back to an area where it can happily trade, and this is shown by larger bars on the VP, price wants to be happy, to be happy it needs to transact alot! So two takeaways... One, dont rush into falling or rising currencies! as they are heading into areas of low volume and will use mean reversion to run you over... Two, Utilise the fact price has low VP build up to your advantage! use price action and catch moves like that GU rally back to an area of more transactions! and a final little trick, use the VP to tell you if your orderblock is real or a figment of your imagination! feel free to drop some questions below, I may have to make more posts on VP for it to make sense. Maybe I will also make some posts on examples of trading using it, and what to do and not to do. Thinking about it, there is more posts to do, I need to show how to trade mean reversion and 'mountain to mountain' tactics. Hope you find this post interesting, as I take a journey of taking back the layers of many traditional strategies, indicators and the deeper world of maths, I am doing this to try help new traders actually get somewhere! So please give me a like and a follow, I want to expand my reach here on tradingview :) All the best ZenFlo.
Education
by ZenFlo
5
long $YOUWeekly candle looks like it's hitting an important level of support. I'm expecting a turnaround. Potential area's of resistance that will hopefully turn to support are: 50-day MA @ $43.37 .236 Fib @ $44.03 VWAP from ATH @ $46.11 I could easily see it back at $44 in the next two weeks. Maybe even by the end of the week. With global travel expected to be fully back by 2022, Clear Secure ( YOU ) is a solid 6 month to 1 year hold depending on how things shake out in 2022.
NYSE:YOULong
by EBITDAtiger
Regressive VWAP Breakout StrategyStrategy type: Breakout Ingredients: Price, Volume, Regression Prerequisite add-ons (free): Regressive VWAP and Strategy Visualizer Target market: CME:BTC1! or BITSTAMP:BTCUSD - Long Entry on Close crossing over Regressive VWAP - Short Entry on Close crossing under Regressive VWAP - Optional: exit when price retraces to upper band (LX) or lower band (SX) The key to this breakout strategy is the Regressive VWAP, which weighs Price and Volume with Regression Analysis, making the slope and its bands more responsive, with a degree of mean reversion. Below is another example, this time CME_MINI:ES1! .
CME:BTC1!Education
by ChartVPS
SUSHI/USD looking good to me... Hay All Traders, I'm not a financial advisor, Don't buy or sell bass on what I'm saying... PLEASE DO YOUR OWN HOMEWORK. THIS POST IS JUST FOR INFO ONLY... At this time, I do own a small amount of this coin! I'm looking at the daily chart and putting on my version of the RSI, and yes, it has a lower lowered, but it's still hodling the overall trend. With my version of MACD, it's still red, but I'm looking at the bars at the top, it's popping out of the "Linear Regression," my look back is the last 100 days and 10 days, and I'm using Linear Regression as support and resistance. And looking at the 1H chart, it looks even better to me!
COINBASE:SUSHIUSD
by ADHDing_
BTC | XBT | LONG | Areas of InterestWith the large accumulation over the last two months, most of the buy-side imbalance levels have been broken on #BTC. While this is a great opportunity to BUY BTC traders/investors must be careful of the huge risk taking a buy-side trade at this point. If we break $31,000 on the daily we will be heading lower towards 28-26000 $ for #BTC On the other hand we have one last buy-side imbalance area of support for buyers, which could drive price back towards $37,000 Look to see a few Sell-side imbalance areas broken if you want to be risk adverse on the long setup. Don't forget to follow me on Tradingview 🤴🏾 Happy Trading Mr Ionic
Long
by Little_Big_Movement
Indicators For A Volume Profile Based Trading StrategyVolume Profile has been popular among futures traders since the beginning of electronic trading and the introduction of TPO charts. I use several scripts from the TradingView Volume Profile Suite for a trading strategy I'll teach in a upcoming video. For now, here are the scripts and indicators applied to the charts I show in this, and past, recordings. Indicators on the 30m Chart: Volume Profile > Session Volume HD PriorDayOHLC (Available in the Public Library) 233 EMA (Built-ins) Indicators on the 5m Chart Volume Profile > Visible Range VWAP Stdev Bands v@ Mod (Available in the Public Library)
CBOT_MINI:YMU2021Education
by RodCasilli
54