VWAP | Let’s Talk About Day Trading Niches!

VWAP | Let’s Talk About Day Trading Niches!


hey welcome back to taking trades my name is Jimmy and this is our channel where we talk about day trading we share entries exits and really anything else related to day trading so today is February 7th 2019 I had a nice green day I didn’t even look at natural gas today after yesterday’s sluggishness I just left it alone I moved on went to some large cap stocks and had a little bit of success today so today I focused on my V whap break strategy that I was talking about a few videos ago and I’ll try to link somewhere in here at the end of the video that that video so you can watch that and catch up on it but I had a too specific view at break strategies that that worked great today and or the same strategy but two attempts at it both green both were great I want to break those down and explain those a little more kind of show you what I’m doing on those and and then I also want to I kind of came up with an analogy that I want to share at the end of this video after we break this the trades down and it just helps I something dawned on me today about trading strategy and different patterns and I found myself sort of saying you know why do I have to have all these different strategies in all these different patterns I’m watching for when I could just analyze a chart and look for my strategy or my thing that I do really well and only do that thing and as I sort of look at some other folks who were pretty successful in day trading sort of a common theme is that they have you know a thing they do and they just do that really well so I think with day trading we have to really niche down into one specific thing that you do get really really good and then once you feel like that is a super reliable source of income for you with that one strategy or that one pattern or that one thing then maybe move on and expand your horizons and day trading and figure out how to you know maybe some other plays that might work for you but today it really hit home with my success on this V Webb trading strategy that this might be maybe my thing right now that that’s working and maybe I need to really niche down and just focus on that and then maybe collect information on my trades and sort of see what my success rate is with it and then go from there and and as I continue to learn I can add other strategies but anyway let’s jump into these trades and then after that let’s talk more about what I’m babbling about now and we can you know maybe you guys can comment let me know what what you think about micchon down to one specific strategy versus trying to do a bunch of everything and be maybe mediocre in a bunch of stuff so anyway let’s jump into the trades we’re diving in here so I’m not gonna look at natural gas tonight I promise I’m not gonna go and check it out I’ll just say that if you were holding D gas today you had quite a day but anyway I’m looking at Facebook here and like I mentioned in the intro video I was just I was looking at my V whap strategy the view at break strategy that I’ve been messing around with and it worked really well today and I just want to break that down for you and show you guys what’s going on so this is Facebook this is the one in one minute chart and you can see the purple line is my view app I don’t have the upper or lower Viette v wet bands right now I just have the 50 simple moving average and then the general middle view app so you can see it push up and as the day started this is a another trade not the B web break I’m not going to get into this one right now but this movement up and then you can see start to push down and then we get a V whap break right here and when I say a view at break I just mean price action is above it crosses the V lap and continues below so what I like to do with the view at breaks is anytime I get a push below the B lap which happened right here then sometimes you’ll get a pause and a move back in the other direction a little bit so to avoid some of that craziness with getting stopped out prematurely what I had decided a while ago to do was wait for that first break let it pull back or bounce or pause whatever it wants to do and then I’ll set my limit order my stop limit order like a penny or two below this low so it can kind of do what it wants and then when it’s ready to go down and cross that line it’ll it’ll activate my order I’ll be in and I can then look to take profits as we go lower so that’s exactly what happened today I got the cross it broke the B lap get pullback it was bouncing around in here a little bit I set my order a penny or two below and then on this candle here you can see I got in short 300 shares at 160 808 so it broke down I sat through this candle and then this candle and it pushed down and activated my my stop limb in order to cover my position so ended up being a beautiful trade and I ended up you know up 157 dollars on on Facebook today so it was just a really good trade and what I decided to do was to journal a little bit about this and write down some specifics about this trade because this is a strategy that I’ve really been enjoying investigating and trying to figure out and so I just took note of kind of the direction of the different EMAS and simple moving averages and then I’m gonna try and catalogue about 20 to 30 of them and then I’m gonna do some calculations on them and sort of look for any commonalities and then as I figure that stuff out all I’ll obviously make a video in share that with you guys so that was Facebook now I’m gonna flip over and my other screen I’ve got Twilio so Twilio was doing an interesting thing and this will probably remind you maybe a little bit of natural gas with you guys and D gas I know I said I was going to talk about natural gas but I had to reference it there because natural gas and you guys and digas seem to like to range around and that’s where I seem to take my trades are based off support levels so Twilio opened up pushed down bounced on the support here a couple times there there and there you can see it pushed all the way down to the bottom of this white rectangle I I drew in and then pushes back up takes a breather goes all the way to the top hits resistance touch touch touch rejection so we’ve got two nice big rejection points here and I’m gonna fancy it up here so there’s a rejection point and there’s a big rejection point down here we’ve got a big rejection point so you can see we’re bouncing back and forth and then down here we get another one so when I saw this happening I said okay if this comes back up I started watching Twilio as it was sort of like in this area right in here at across the view eopns right in here and I saw these points that had happened and I said okay if Twilio comes back down and breaks the view app then I’m gonna use my view app break strategy go short and then my target is gonna be down here to come back down so I went ahead it happened it popped up came down broke the V whap it came down here broke and then pulled back and then I set my order below and you can see actually got filled it actually wasn’t the greatest entry it was 110 18 which is right where my cursor is and that’s class you know I would like to get in you know up here closer I like it when it pauses a little bit there and bounces back and then goes again because then I could place my order and get get pulled into the trade so it activated we got a push down pull back I have my stop set a little above the V whap so good risk management push down again we’ve got another little pullback and then it dumped and that’s where I went ahead and got out so another great V web brake trade and so a journal this one wrote down some specifics and then the problem with both of my trades and actually all three of my trades today the one I’m not talking about as well is all three of them if I want to held them longer they would have made me more money it’s interesting how that you know seems to seems to work but you can see I sold in here at 88 actually right there right at the top of this candle so I could have had all this profit then it would have bounced around and sold off and you see this what’s what’s unique about this well well not unique so what’s what’s similar boom boom extend this rectangle out boom it came all the way back down I got rejected again setting up this amazing level of support so another great view at break trade that has me really excited about the strategy and now that you’ve watched this far into the video I’m gonna go ahead and share my analogy so let’s think about sports as a category right just a sports have so much within them right different sports there’s tons of different sports so if someone came to you and said hey I want to learn how to play basketball and you said okay I’ll teach you they start to learn they start to get a little better at it and then they see someone ride by on a mountain bike and they say oh you know what mountain biking seems kind of nice I’m gonna try that out so they do that for a little while and then they decide they want to swim so they’re swimming a little bit and then they’re playing I don’t know dodgeball or something and though before you know it they’ve got like eight different sports they’re playing how likely is it that they’re gonna get really good at any of those sports not likely unless you’re over talented in in any physical activity you know that that would be the only case but that’s not the majority of us so think of day trading as sports so day trading is the big overhead category and within day trading you have bear Flags bull flags ascending wedges descending wedges hiya day breakouts momentum pushes you have you have dip buying you have all these different types of day trading types of sports so if you’re trying to do everything which it dawned on me the other day because I would see something set up and say oh that looks like an ascending wedge I should maybe buy that breakout and it might work or it might not but then the next day I’m saying Oh a key breakdown at a support level or at a support level I’m gonna do that next thing I know hey it’s a 15-minute opening range break down I’m gonna trade that if you’re always trading the things that are different you really can’t measure how consistent you are because you’re constantly doing different things you can’t really measure you know playing a bunch of different sports you can’t really get an idea for how good you are at swimming you know or whatever because you’re doing a bunch of other things and those aren’t related to swimming so I know that with trading price action is universal but if you’re trading a lot of different setups it’s hard to measure where you are and when you look at some people who are over successful and doing really well in trading they always have one thing just one thing that they do day in and day out and they’re really really good at it so it’s good to know about as much as you know learn as much as you can but at the end of the day day trading you need to make it as simple and niche as possible this is just my opinion but if you can find that one thing like for me right now looking at this bwak break strategy I want to trade this 20 30 40 50 times and do a bunch of math on it and if I’m a successful or consistent at all with it then if I just channel all my energy into this one strategy and just get really really good at it that could be it I could consistently day in and day out make money on one strategy and when you look at people who have been doing it a long time they typically have their go-to now I’m not saying you can’t be really good at four or five different strategies that are certainly people who are amazing at a lot of different types of trading but if you look at their track record they’ve probably been doing it a lot of years and they probably didn’t start with all five types of training they probably honed in on one thing and then once that was really really really good they probably moved on to something else for more variety or to be more flexible as a trader do it to have more opportunities that you can trade in one given training day so anyway that was just food for thought I want to hear what you guys think about that because if I can see some traders especially in the comments sometimes people who are stressed about because they feel like they’re flailing like they don’t understand what they’re doing because they’re spread so thin they’re sort of all over the place and I hate seeing that because I want and it’s helping me to realize this too because if we can all drill down to a more specific approach that fits our personality it might set us up for for more success and at least measurable results so you can at least trade something the same thing with the same triggers in the same whatever timeframe you’re using and then if you’re not successful at it you’ll know and maybe then you could move on but when you’re trying a hundred different things you know two-three years can pass and you might still be in the same level of learning you know you might not have progressed because you haven’t stubbed figured out that one thing so I would challenge you to think about your personality and what you tend you tend to gravitate towards regarding your trades and then maybe just hone in and commit to only taking the next 20 trades on that one set up and just see where it goes and do some calculations on it and then we can talk about it I’ll show you the results from mine and then you can talk about yours and we’ll see maybe where that goes and and how successful it was but anyway leave some comments below I want to hear about it want to hear if you know is this crazy talk or is it is it something that could be legitimate I hope you all had a great day I hope you’re green if you traded digas if you if you slayed the monster today I want to hear all about it I want to know your entry I want to know your exit I want to know everything about it because I’m excited for anyone who took advantage of the big natural gas moves the natural gas report Wow that was big so I hope everybody did well today so anyway leave a comment if you’re new to the channel hit that subscribe button give me a thumbs up if you think I deserve it and I’ll see you tomorrow at some point thank you so much for stopping in

38 Comments

  • Sheffield M'Coy

    February 8, 2019

    great work

    Reply
  • TechBooze

    February 8, 2019

    Thanks for sharing Jimmy

    Reply
  • Saulo hetzael gutierrez ruiz

    February 8, 2019

    Thanks for sharing. I think you have passion for trading. Make it exciting. It’s not easy but you make us get better

    Reply
  • alderman2001

    February 8, 2019

    I particularly enjoy your videos, Jimmy, because we're at kind of a similar level. I'm a bit older, I think — began investing in mutual funds back in the 90s, but just started trading equities in August (just in time for the crash, SMH). Still trying to lock down a particular strategy, so it's interesting to hear about others'.

    Since you asked: +300 on DGAZ again today. In @ 115.5 (straight out of the gate), out @ 118.5 (first major pullback). Woulda/coulda/shoulda rode it all the way up, but feared a reversal that never materialized.

    Also abandoned S.S. UGAZ as she sank following the report. Gobbled up all my profit for the week and spat out the bones.

    Reply
  • Rumo Llc

    February 8, 2019

    I had a ruff day made many mistakes and at the end of 8 trades lol I walked away with 10 bucks from down..-178 scalp trading low float stocks to +188 riding both sides of uwt and dwt.. lesson of the day is stick to what works best and keep my trading simple.. I replaced Gush& Drip with Uwt&Dwt …. I feel I was being Manipulated in gush and drip.

    Reply
  • Vincent Jesse

    February 8, 2019

    The jack of all trades is the master of none

    Reply
  • Titan Fan

    February 8, 2019

    Great sports analogy ! My coach always said perfect a go to move and have a counter. I need to be near unstoppable with my go to and ready to counter when the conditions don't fit my strategy. Appreciate all your hard work, guidance and support!

    Reply
  • The_Larson Family

    February 8, 2019

    I'm learning so much from you. I'm out of ugaz, eia report says supply will supercede any demand. Bearish on cold. Good job.

    Reply
  • Andrew Nall

    February 8, 2019

    Great analogy

    Reply
  • Andy Nguyen

    February 9, 2019

    Thanks for a very good video.

    Reply
  • Martin Duffy

    February 16, 2019

    Pity no Long Trade examples

    Reply
  • bru bru

    April 7, 2019

    Least complicated is best.thanks for the grat info.

    Reply
  • Long Range Aim Always

    April 23, 2019

    Great video but had to bounce back between 1.25 and 1.5 speed 😂

    Reply
  • Seneca yamma

    April 28, 2019

    Hello there Talking trades, thank you so much for the fantastic video! It truly adds value to me as a new trader. May I ask, if you don't mind, where you placed your stop loss on the FB short when it closed under VWAP? May I also ask, do you think that trading this VWAP strategy is among the best scalping frameworks out there? Thank you so much for your generosity. All the best wishes.

    Reply
  • KangoKid Kidd

    May 4, 2019

    what is the red line

    Reply
  • Shawn S

    May 4, 2019

    Really enjoyed this one… First time running into your vids, and it was good timing.. I am struggling with TOO many strategies right now looking for/watching for them all, and hearing you put this into perspective really clicked… I need to specialize and work on one strategy at a time to find what I am good at… Then specialize in a few that really resonate.

    Your time on this is very appreciated… Cheers man….

    Reply
  • Narayana Prasad

    May 13, 2019

    WONDERFUL. I WANT TO KNOW WHICH MOVING AVERAGES YOU USED IN THIS ANALYSIS.. CAN I KNOW . REGARDS – N PRASAD BANGALORE, INDIA

    Reply
  • M J

    May 25, 2019

    The big short guys let the price reject the vwap twice as confirmation. In your Facebook example you can see the double test and then the huge drop

    Reply
  • Samuel Isaac

    May 25, 2019

    Thanks for the video… I really enjoyed listening to your strategy.. Best of luck and stay green…

    Reply
  • Reo Chomane

    May 26, 2019

    Thanks for the advice towards the end💰

    Reply
  • TheJohann333

    May 31, 2019

    Good video…Thanks.

    Reply
  • Joe Lavoie

    May 31, 2019

    Agreement on focused approach in all things. VWAP whats your thoughts on swing trades using this approach. Swing Trades average being 3 or 5 days max. Holding.

    Reply
  • Chosen One

    June 3, 2019

    This is great. If you pull up almost any intraday chart with VWAP you will see exactly how this strategy works if applied.

    Reply
  • John Inniss

    June 8, 2019

    Thanks for the video. They way you explained the VWAP fade makes perfect sense now where it relates to Risk as well as entries and exits. I always had a problem with my exits. I see it now. Thank you so much 😊

    Reply
  • Burk Efe

    June 8, 2019

    i enjoy and benefit watching your videos a lot!!!

    Reply
  • saman ramsey

    July 19, 2019

    what period do you use ? is it default (14)?

    Reply
  • Ronald Tambio

    July 24, 2019

    I wish i can show you my charts. I use the five min charts with the macd overlay. Try it. I hope it helps. It helped me out

    Reply
  • Montana101x

    July 31, 2019

    What’s the red moving average? 9EMA or 13 EMA / Thanks

    Reply
  • E.S Anoop

    August 18, 2019

    For Daytrading, what is the Optimum and highest timeframe we should use for creating a stock screener with VWAP as filter/parameter? Is it wise to check VWAP on higher timeframes like 30 mins, 1 hour and above?

    Reply
  • Ken K.

    September 16, 2019

    I agree, I also like VWAP. Curly's advice from the movie City Slickers, "You just have to find that one thing." 🙂

    Reply
  • Norman Lacoste

    October 9, 2019

    what is the probability of success witht his VWAP strat

    Reply
  • Day Trading with Chris

    October 9, 2019

    Exactly, have to focus on an edge and get really goodnat trading it… I do vwap bounces, might explore vwap break strategy in the future!

    Reply
  • Nino Concepcion

    October 15, 2019

    Great video. I'll need to watch this a few more times to really understand it. I'm new to trading.

    Reply
  • Alvin Sandy

    October 17, 2019

    Great video! I trade around the VWAP as so many traders and even algos respect it. VWAP bounces, pullbacks, rejections, tests and breakouts are my go to setups.

    Reply
  • mrshy2u

    October 25, 2019

    Might I ask if you have had formal training? If so, which program?

    Reply
  • Surf Dreamer

    October 26, 2019

    Can this vwap strategy work for swing traders for those with accounts under 25k

    Reply
  • Gods Vengeance

    November 1, 2019

    Thanks for this video. I'm new to trading and been paper-trading. I've been feeling overwhelmed on all the strategies and just been looking for that 1 strategy that I can master.

    Reply
  • Lane Bishop

    November 2, 2019

    Hi Jimmy, just found your vids. Really liked this one on vwap!!!! Excellent tutorial for your new traders, and I can tell you without a doubt, stick with THIS strategy and your gonna make killing!!! Your support level should have been mandatory thinking, but live and learn! 😝. Good luck!!

    Reply

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