Repaints AGAIG Daytrading the VWAP For ThinkOrSwim

[csricksdds]

AGAIG As Good As It Gets
DAY TRADING THE VWAP for TOS​

The Chart Link: http://tos.mx/!4RAjwmm0 MUST follow these instructions for loading shared links.

Institutional traders frequently use the VWAP (Volume Weighted Average Price) primarily for intraday trading, usually on a one-minute, five-minute or fifteen-minute chart. The set-up I will show you is using a five-minute chart although the two other time frames work as well. The SPY, IWM, QQQ and/or volatile stocks work well for these trades since In/Out day trading stocks can be less risky as expirations may be further down the road. My chart will show TSLA for day trading today.

NOTE: When using this setup for intraday (0 DTE) SPY, QQQ, and IWM trades I will frequently use tomorrow’s exit when placing afternoon trades to help limit rapid afternoon theta decay.

In this chart we will follow the VWAP (Volume Weighted Average Price thanks to BenTen’s Crossover Indicator and the 7 EMA for our trading entries. We are following the VWAP, as previously stated, since this price level is frequently used by market makers. I will be using a 5 min. TSLA chart.

In this setup we are using the White 7 EMA Line (Exponential Moving Average) as our trading price line in relation to the VWAP (Yellow dotted line). The RED/GREEN ARROWS are potential entry points. Entries are only made when the arrow shows a candle is fully above/below the VWAP following crossover of the 7 EMA Line. You can then continue to follow the 7 EMA Line candles as long as they stay above/below the VWAP and no other indicators are showing a possible change in direction.

REMEMBER: Always place trades following the overall trend of the market using multiple indicators. Your DMI will show the longer time frame trends.

There may be fewer (but more accurate) trades using this method? We only enter long trades if price is above VWAP and only enter short trades when price is below VWAP.

NOTE: There will be arrows that don’t meet trading crossover guidelines.​

The VWAP is frequently “retested” so our entries are only at points where the arrows show candles fully above/below the VWAP and the 7 EMA Line is crossing above/below the VWAP. These trades may be short (lasting only 1-3 candles) or they may be long (lasting multiple candles if price stays above/below the VWAP once entry trade has been placed.

EXIT POINTS for trades are frequently double tops/bottoms, at the 1 SD (one standard deviation dashed white lines), at Algo Pivots, or at Murrey Math Pivot points. All of these are on the chart for your enjoyment and can be used as potential turning points. Also included are my 1.75 SD direction bubbles and lower squared histograms to easier catch the eye.

The upper dashboard is one frequently used. Please ask if any questions?

 

[neil320]

Thanks for putting this together, it's great. I am new to trading (other than mutual funds and the odd stock), and looking for tools to use. I tried various versions of the squeeze but found them to be difficult to use with accuracy (and also may have been using them incorrectly).

Would like to explore trading options as well, still getting used to the jargon and format. Any advice for beginners?

Thanks again!

 

[csricksdds]

Thanks for putting this together, it's great. I am new to trading (other than mutual funds and the odd stock), and looking for tools to use. I tried various versions of the squeeze but found them to be difficult to use with accuracy (and also may have been using them incorrectly).

Would like to explore trading options as well, still getting used to the jargon and format. Any advice for beginners?

Thanks again!

There are many trading charts available on this site. Pick one that fits your eye. Mine are listed under AGAIG.
Here are mine, are sorted by popularity:
https://usethinkscript.com/search/1...1&c[nodes][0]=5&c[title_only]=1&o=replies&g=1

I’ve tried to give explanations with several of them.

 

[fire580]

AGAIG As Good As It Gets
DAY TRADING THE VWAP for TOS​

The Chart Link: http://tos.mx/!4RAjwmm0 MUST follow these instructions for loading shared links.

Institutional traders frequently use the VWAP (Volume Weighted Average Price) primarily for intraday trading, usually on a one-minute, five-minute or fifteen-minute chart. The set-up I will show you is using a five-minute chart although the two other time frames work as well. The SPY, IWM, QQQ and/or volatile stocks work well for these trades since In/Out day trading stocks can be less risky as expirations may be further down the road. My chart will show TSLA for day trading today.

NOTE: When using this setup for intraday (0 DTE) SPY, QQQ, and IWM trades I will frequently use tomorrow’s exit when placing afternoon trades to help limit rapid afternoon theta decay.

In this chart we will follow the VWAP (Volume Weighted Average Price thanks to BenTen’s Crossover Indicator and the 7 EMA for our trading entries. We are following the VWAP, as previously stated, since this price level is frequently used by market makers. I will be using a 5 min. TSLA chart.

In this setup we are using the White 7 EMA Line (Exponential Moving Average) as our trading price line in relation to the VWAP (Yellow dotted line). The RED/GREEN ARROWS are potential entry points. Entries are only made when the arrow shows a candle is fully above/below the VWAP following crossover of the 7 EMA Line. You can then continue to follow the 7 EMA Line candles as long as they stay above/below the VWAP and no other indicators are showing a possible change in direction.

REMEMBER: Always place trades following the overall trend of the market using multiple indicators. Your DMI will show the longer time frame trends.

There may be fewer (but more accurate) trades using this method? We only enter long trades if price is above VWAP and only enter short trades when price is below VWAP.

NOTE: There will be arrows that don’t meet trading crossover guidelines.​

The VWAP is frequently “retested” so our entries are only at points where the arrows show candles fully above/below the VWAP and the 7 EMA Line is crossing above/below the VWAP. These trades may be short (lasting only 1-3 candles) or they may be long (lasting multiple candles if price stays above/below the VWAP once entry trade has been placed.

EXIT POINTS for trades are frequently double tops/bottoms, at the 1 SD (one standard deviation dashed white lines), at Algo Pivots, or at Murrey Math Pivot points. All of these are on the chart for your enjoyment and can be used as potential turning points. Also included are my 1.75 SD direction bubbles and lower squared histograms to easier catch the eye.

The upper dashboard is one frequently used. Please ask if any questions?

Thank you again, you are so generous - on a different point, where and how do I subscribe to this thread?

 

[csricksdds]

Thank you again, you are so generous - on a different point, where and how do I subscribe to this thread?

All of my posts are on this website. I think you can post Like or Follow if you like my posts. Thanks for your kind words!

 

[useThinkScript]

Thank you again, you are so generous - on a different point, where and how do I subscribe to this thread?

Instructions For Subscribing To A Forum Thread:
https://usethinkscript.com/threads/forum-bookmarks.19617/

 

[fire580]

All of my posts are on this website. I think you can post Like or Follow if you like my posts. Thanks for your kind words!

I notice sometimes a short trigger arrow is "green" and a long trigger arrow is "red"
does this mean anything?

 

[csricksdds]

I notice sometimes a short trigger arrow is "green" and a long trigger arrow is "red"
does this mean anything?

If it's in the valley of decision it may go back and forth a little bit until it makes up its mind....remember you want two, or more, indicators indicating the same thing.

That comes under the heading "Repaints"

 

[KermitRegan]

Hello,

What is the difference between the thick green and red arrows and the "Short" and "Long" labels?

Thanks!

 

[csricksdds]

Hello,

What is the difference between the thick green and red arrows and the "Short" and "Long" labels?

Thanks!

Anytime you want to see what a Bubble or Arrow represents put your pointer on what you are looking at and right click and it should tell you which indicator it represents. If you do this and still have the same question let me know. Thanks

 

[rharv]

can you detail the upper dashboard specifically the DMI and the green light

 

[csricksdds]

can you detail the upper dashboard specifically the DMI and the green light

The upper dashboard: First is the ATR (Average True Range) looking back 9 periods. Second is the PSAR Transition which shows how many bars ago there was a change in direction. Next is the ORB showing if current price is Above/Within/Below the opening 15 minute range. Next is the DMI (Directional Movement Index) which shows longer time frames from where you are looking and shows whether they are Green/Yellow/Red showing if they are in uptrend/neutral/downtrend. The Traffic Light is a label showing movement in the current time frame. All of the indicators on my charting are looking for direction from slightly different perspectives which is why one like for two or more to be in agreement.