Folks I happened to just read back and find Van's VWAP post. Who even cares anymore.
But lets at least correct his errors. Van took the opposite side of my Short Call on COIN and got rolled terribly. He wants you to think somehow he made money off the trade! A whole 2% Plus the fees.. and he want some sort of credit for up 2% and down $10.
I am not in the short trade. That's' not somethig I do- I was pointing out the opportunity to several hedge funds that follow this thread closely. If I'm lucky they will feel better about me after they make a lot of money.
A little bit of knowledge of course is a very dangerous thing.
Van thought he was being tricky by shooting around the VWAP phrase without understanding at all how to use the indicator-- You never use it after a big move up. FAIL right there and why the trade failed as well/
In my world when I swing I do it right. Just off my TA.-
-- I know swingers who rely on VWAP I don't but certainly many do.
Many swing traders use the strategy of buying the stock if it closes the day above the VWAP, and selling or shorting the stock if it closes the day below the VWAP. As a swing trading indicator, it's important to understand the VWAP often acts as a support and resistance level.<-----
And that's all it is. Bollinger Bands is a much better tool.
it's important to be aware of the limitations of the VWAP, such as its lag time, limited applicability, and potential overemphasis on volume.<--- so much so!
Vs. Bollinger
LT ideas and swing trades I would look at VWAP but even then I prefer On Balance Vol + accum + RS + Bollinger Bands.
So in position trading and swing trading you find not only your entry but more importantly your exit wit VWAP and that's why it's an important tool. In a day trading strategy you want the stock in question to be flat or slightly up when you get your VWAP aert**
There is something called anchored VWAP which I like:
Anchored VWAP (AVWAP) trading strategy is a VWAP trading method that involves setting an “anchor point” or starting point of the VWAP, and then comparing the current VWAP to the anchor point to determine if a security is trading at a premium or discount. If the security is trading at a premium, the strategy gives a sell signal, and if it is trading at a discount, the strategy gives a buy signal. The strategy is common among institutional traders.
Hope This Helps.
Safe Trading ~si
But lets at least correct his errors. Van took the opposite side of my Short Call on COIN and got rolled terribly. He wants you to think somehow he made money off the trade! A whole 2% Plus the fees.. and he want some sort of credit for up 2% and down $10.
I am not in the short trade. That's' not somethig I do- I was pointing out the opportunity to several hedge funds that follow this thread closely. If I'm lucky they will feel better about me after they make a lot of money.
A little bit of knowledge of course is a very dangerous thing.
Van thought he was being tricky by shooting around the VWAP phrase without understanding at all how to use the indicator-- You never use it after a big move up. FAIL right there and why the trade failed as well/
In my world when I swing I do it right. Just off my TA.-
-- I know swingers who rely on VWAP I don't but certainly many do.
Many swing traders use the strategy of buying the stock if it closes the day above the VWAP, and selling or shorting the stock if it closes the day below the VWAP. As a swing trading indicator, it's important to understand the VWAP often acts as a support and resistance level.<-----
And that's all it is. Bollinger Bands is a much better tool.
it's important to be aware of the limitations of the VWAP, such as its lag time, limited applicability, and potential overemphasis on volume.<--- so much so!
Vs. Bollinger
- VWAP and Bollinger Bands are both technical analysis indicators used in trading stocks and other financial securities. VWAP represents the average price of a security weighted by volume over a specified time period, while Bollinger Bands create price bands to show the volatility and potential trends of a security.
- The differences between VWAP and Bollinger Bands include their calculation methods, interpretation of results, and application in trading strategies. Bollinger Bands are more useful for volatility analysis and identifying potential breakouts or mean reversion, while VWAP is more useful for identifying support and resistance levels for day trading and position trading.
LT ideas and swing trades I would look at VWAP but even then I prefer On Balance Vol + accum + RS + Bollinger Bands.
So in position trading and swing trading you find not only your entry but more importantly your exit wit VWAP and that's why it's an important tool. In a day trading strategy you want the stock in question to be flat or slightly up when you get your VWAP aert**
There is something called anchored VWAP which I like:
Anchored VWAP (AVWAP) trading strategy is a VWAP trading method that involves setting an “anchor point” or starting point of the VWAP, and then comparing the current VWAP to the anchor point to determine if a security is trading at a premium or discount. If the security is trading at a premium, the strategy gives a sell signal, and if it is trading at a discount, the strategy gives a buy signal. The strategy is common among institutional traders.
Hope This Helps.
Safe Trading ~si
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