VWAP TRADING STRATEGY – 5 TRADES In Stocks & Options (Day Trading) πŸ”₯πŸ”₯

VWAP TRADING STRATEGY – 5 TRADES In Stocks & Options (Day Trading) πŸ”₯πŸ”₯


– [Instructor] Welcome to
the video on VWAP Trading Strategy, where I will discuss
some of the recent trades I had taken in stocks
and in options. In some of these examples, I
will be covering entry and exit along with rationale
behind the trade, and I will also be talking
about trade management in general. I have covered day
trading in over 15 videos and link to all those
videos will come up at top right end of your screen. So let’s get started. All trades posted in this
video are the same trades that I had covered in
the Telegram channel. So the first case
here is of Tata Steel. In this trade, I
took entry at 345 and sold the same at
349 and then at 352. In this particular trade,
there were two main challenges. Number one, price had gapped up and it’s always
risk to buy the gap, and number two, the first
candle that was printed for the day was
that of indecision. Other than this
gap on this chart, there is actually no
visible sign of demand given how the first
candle had closed. So, look at the body
of this first candle, you can spot long
wicks and long tail, which actually represents
indecision in the market. My thought process at
this stage was to wait for a couple of more
candles to assess the underlying demand in price. The second candle
that was formed was a fairly bullish candle, and it completely engulfed
the body of the first candle. This was actually a sign
of continuation of trend. So, what I did was, I waited
for high of these two candles to be crossed and then
I entered the trade as the high was
taken out at point A. I finally exited the
trade at points B and C at 1% and 2% gains. Exit here was purely based on
formation of strength candles that is wide range candles,
after I took the entry. And do note here that price
had already gapped up, and hence I was more
inclined to book profits rather than to hold
the trade for the day. The second case here is
of Reliance Industries. In this trade, I
took an entry at 1375 and then exited at 1373. Price had again gapped up
in this particular chart and the opening candle
was not entirely strong. Long wick of this candle
that you see here, indicated supply at higher level and hence I did wait for
some more confirmation. Eventually, I took
entry at about 1376 at this particular candle and in hindsight, I
could have avoided this. My thought process at this
particular stage was that, I did think that the first
candle here would provide some sort of support
to the price, but in the end, price
simply kept drifting lower. In one of the earlier
VWAP trading videos, I had explained the relevance
of such wide range candles and hence my entry here
was not entirely wrong. As price drifted lower, I did
think of closing out the trade at point B, but I held on
as volumes on the downside were not expanding. So, I have not included
the volume chart. I simply forgot but in case
you have a Reliance chart for 16th of October, do
check out the volumes on this particular candle. In the end, I just managed
to get out of this trade at four rupees loss per stock. This case again is
a perfect example of why trading gaps
is little tricky. At times judging the underlying
demand is a bit difficult, and one is more prone to making
errors as trade management is not easy. If you are beginning
with VWAP indicator, then for the first few months,
prefer charts without gaps. As you gain more
experience in the market, you can then look into
trading gaps as well. The third case here
is of weekly options. In this trade, I entered Bank
Nifty options at 159 and 153, and eventually I
exited the same at 447. When the day began, opening
candle was actually strong and VWAP Indicator was
above MVWAP indicator. Second candle that
you see for the day, it was not entirely strong and hence I did not
take entry right away. Till about 11:30, the entire
trading session for the day was within the range of
these first two candles. Price then moved above
this range at marking A, that I’ve marked here and
this was actually my cue to go long in the market. So, do take a look
at volume as well. As price has moved
above the range, volume have clearly expanded. This is the kind of combination
that you have to focus upon. If you look at what happened
after I entered the trade, price simply moved
sideways and consolidated. Most of the traders here would
begin to doubt their decision and hence you need to be aware of this psychological mistake. At point B, C, and D, we then
get these strong wide range candles that reaffirm the
direction of price trend. So, I finally exited the
trade at candle E here because of the long
wick of this candle. This actually indicated
some supply ahead. Luckily price did not
move much post this, and this became a well
timed exit for me. The key message in this case
is to be patient for price to make a decisive move. At times price
consolidates sideways and one has to be patient
enough to wait on the trade. This 4th case here highlights the importance of setting
the right stop loss. In this case, I entered
Reliance Industries as this candle was
developing at 1381 and I exited the same at 1397. Opening candle in this
case was narrow in range and once the high of this
candle was taken out, I did enter the trade in
this particular candle. Stop loss for the trade
was set at swing low of this entire range. This candle if you see is
very similar to hammer pattern and this actually represents
some demand in this region. Post entry, price
actually consolidated and it did move lower. Most of the traders would
actually think of exiting trade at point B, but the thing
you have to note is that there is no range
expansion here, and even volumes did not expand. Then in the afternoon
session, candles C, D and E, reaffirmed the bias of trend. Do take a note here that
between these candles, C, D and E, there is not
one single bearish candle that indicates presence of
strong sellers in the market. I eventually exited the
trade somewhere here as session was coming to an end. So, in this case,
had I not set stop at this level, I would have
probably exited the trade at point B, since the low of the
entry candle was breached. You have to understand that
it’s absolutely crucial to know how to place
stop loss in day trading. I have done a separate video
on this couple of weeks back, and link to the
same would come up at top right end of your screen. This fifth case is
about assessing momentum and being with
trend despite couple of counter trend candles. In this particular trade, I
entered HUL at 1955 and 1958, and I exited the same at
1975, 1989, 1958, and 1980. So in the morning
session, VWAP Indicator was below the MVWAP Indicator,
and opening actually happened with a fairly
wide range candle, but if you look at this candle, this is not entirely bearish as volumes were not at all high. About 30 minutes later,
range of this opening candle was crossed at this point. And this was one of the
first clues that momentum was reversing for the day. Once price was above
VWAP Indicator and MVWAP, I then entered the
trade based on momentum at Point A and Point B. Technically this was not a
valid trade as VWAP Indictor was still below MVWAP Indicator, but based on momentum alone, one could have still attempted
to enter in the market. Price then quickly
moved from 1955 to 1980, at which point, I did
exit 50% positions at C & D candles here. After my initial
exit in the trade, price then moved lower
with this wide range candle that I’ve marked, but you
need to look at volumes again. As price was moving lower, volumes were clearly
on the lower side. During this entire corrective
phase that you see, I held onto the trade
just because volumes were not expanding. And finally as price
again started retracing
towards the top end of the range I
finally exited at point E and point F. So, in this particular case, I actually combined
the element of momentum along with volume
expansion criteria. As correction was
happening in the market, I did not panic and
I held on to my trade simply because there were weaker
participants in the market as volumes were not
at all expanding. So, through these videos,
I am trying to show more practical applications
of what we have covered in the previous VWAP
trading strategy videos. So, do let me know if you
like to see more such videos as this will help you
plan your trades better. So, for those of you who
are new to this channel, link to the VWAP
Trading Strategy videos will come up towards top
right end of your screen. Kindly consider
hitting the like button and sharing this video
if you find it useful. Thanks a lot for
watching this video guys. Take care and be safe.

55 Comments

  • Trade With Trend

    October 23, 2019

    Hi Guys,

    Details about the VWAP Trading Online Course can be found below. This is the same training that will be given in Mumbai & Bengaluru Convention.

    https://bit.ly/2VP8D30
    Queries – TradeWithTrendTraining At Gmail

    Reply
  • venu gopal

    October 23, 2019

    Good one ST as always…nice your making case studies on your trades…will be very helpful
    .
    i have one doubt regarding MVWAP- im checking MVWAP with two indicators exponential close and Hull close of vwap respectively..i could see hull close is moving faster than exponential mvwap… i think u have tried all moving avg combinations and finally stick on with exponential moving avg???

    Reply
  • Balasubramanian RK

    October 23, 2019

    As always.. Concise πŸ‘

    Reply
  • Commander Raju

    October 23, 2019

    Revision & documentation is one of the key for improvement… Do have a look.

    Reply
  • kkmb

    October 23, 2019

    Excellent ST, thanks for explaining the trades. Kindly make some more videos on challenging trades which you would like to share with us. Thanks for your effort and time. Have a nice time

    Reply
  • Mohit Singh Puri

    October 23, 2019

    Nice way to learn, thank you for your selfless work of explaining us in detail.

    Would love to see more whenever possible serves as a motivation.

    Thank you master for your time.

    Reply
  • praneets1

    October 23, 2019

    Hi…I follow your videos regularly. Very insightful stuff. One suggestion I want to make. In these case study kind of videos, can you walk us through the stop loss setting process for each case as well.

    Reply
  • Jitendra Mohapatra

    October 23, 2019

    Sir how to get VWAP indicator for mt4 and Amibroker

    Reply
  • Anandbabu natarajan

    October 23, 2019

    good one sir

    Reply
  • MK Flowerhorns Kanna

    October 23, 2019

    you are a genius bro. am following your strategy earning consistently. thank you so much. i learnt alot from your videos. lots of videos about share market in youtube. but you are unique. once again thankyou so much.

    Reply
  • A.P. Saldanha

    October 23, 2019

    Wonderful.. Thank you sir.. By watching your videos I get lots of information..

    Reply
  • anupam kumar

    October 23, 2019

    How you select stock

    Reply
  • amandeep kundu

    October 23, 2019

    Dear sir
    Can you please explain reason behind picking up particular stock?

    Reply
  • sushil suryavanshi

    October 23, 2019

    Simply great, effortless and mature explanation Sir

    Reply
  • Amin Ajani

    October 23, 2019

    What is the Time frame of the chart? , vwap & mvwap settings please. Thank you😊

    Reply
  • Arjun Singh

    October 23, 2019

    More of such videos will certainly help

    Reply
  • Prakash P

    October 23, 2019

    Sir Superb vedio. I wanted know how successful trader thinks while taking a trade. None of the vedios explained this on YouTube but you did it. Thank you so much. Sir, please tell how you selected the stocks ?.

    Reply
  • Aishwarya Nair

    October 23, 2019

    Fantastic Ji. Thanks for the update. Have a doubt. Can we enter a position with full size and exit at various stages or we enter at various stages with position? I prefer and feel the first one. Also, from your videos, you also do the first way. Please advise. Thanks.

    Reply
  • Sachin Tambe

    October 23, 2019

    Thanks for sharing your cases …plz keep on posting cases on consistent basis

    Reply
  • jagu2525 Mehta

    October 23, 2019

    How to get mvwap data

    Reply
  • arun dhali

    October 23, 2019

    Thanks to you for your great work. After 2 weeks of practice now I am making some money with vwap.

    Reply
  • Amanjot Gill

    October 23, 2019

    Doubt in Case 5 From pt 'D' count right to candle 11,12,13 volumes increasing with 13th candle bearish. Isn't it the sign to exit the trade immediately?

    Reply
  • Jay Singh

    October 23, 2019

    Looks quite an ideal trading.

    Reply
  • Laxmikant Naik

    October 23, 2019

    thank you sir for the great video… Sir where can we find the MVWAP tool

    Reply
  • Sameer Prabhu

    October 23, 2019

    Thanks for the summary of your trades. This really helps in understanding the mindset behind a trade.
    A query…In the 5th case study, the 11th & 13th supply candles (after D) had considerable increased volume. Any reason why this was not considered for exiting completely?

    Wish you and your family a Very Happy Diwali!

    Reply
  • Karan Sharma

    October 23, 2019

    Thank you for the video. Its very useful

    Reply
  • Chan Shajahan

    October 23, 2019

    What is the timeframe and why did u selected these specific stocks

    Reply
  • Prasenjit Banerjee

    October 23, 2019

    In case 3 we could have trailed the stop to maximize our profit.

    Reply
  • Shan NKHT

    October 23, 2019

    RESPECTED BROTHER…. THANKS FOR THIS EXCELLENT DIWALI GIFT….

    ALTHOUGH,,,I DIDN'T GOT BONUS FROM MY OFFICE….😁

    THIS WAS UNEXPECTED BONUS….πŸ€—

    Thanks for sharing knowledge…

    HAPPY AND PROSPEROUS DIWALI TO YOU AND ENTIRE FAMILY….

    STAY BLESSED….πŸ™

    Reply
  • yogeshram rao

    October 23, 2019

    in youtube history, no one rivel there strategy, but this is the only chennel helping traders without expecting anything, blady rascals what is the problem to like or subscribe to this channel…!

    Reply
  • Tech Freaks

    October 23, 2019

    sold some very long term holding in hul and ril.

    Reply
  • Amit Verma

    October 23, 2019

    Which time frame used in above chart?

    Reply
  • kk consultancy

    October 23, 2019

    Thank you

    Reply
  • Gaurav Agrawal

    October 23, 2019

    Very informative videos.. conclusion of all 4 previous videos you made. Thanks a lot.πŸ‘
    Points which you analys while trading
    1 market structure
    2 strength of participants through volume range expansion
    3 price range expansion
    4 to see whether price has breaked vwap with momentum and next candle is supporting it or not by breaking the high of vwap candle or not!!
    5 strength of opposite direction candles while exiting
    6 candle stick patterns if any..
    .dear sir. Please let me know if any other thought processes were running in your mind..
    Thank you so much.. and happy diwali..πŸ™

    Reply
  • sajas safa

    October 23, 2019

    Your videos are superb… well understand…

    Reply
  • Harshil Bhatt

    October 23, 2019

    Very well explained…want to see more like this and if possible for swing trading also..

    Reply
  • joethim

    October 24, 2019

    Thanks for sharing!

    Reply
  • Bhanu Chandar

    October 24, 2019

    Sir which website are you using??? In investing.com both volumes and candlesticks do not appear on same frame in futures trading

    Reply
  • Diwakar Patil

    October 24, 2019

    Small doubt about nifty index. Is spot nifty have a VWAP or we have to check nifty future VWAP only. I think since index is not directly tradeable it may not have a VWAP. The same doubt about banknifty.

    Reply
  • A Prakash

    October 24, 2019

    Hello, I tried following steps as u mentioned, but added indicators are showing 'n/a' and not visible on chart after adding them. Is required to take paid subscription on Trading.com..?? kindly suggest. Also on 5 minutes chart, what is the time period u chose..?? 9 days/ 20/5 or what..? Kindly comment.

    Reply
  • A Prakash

    October 24, 2019

    and weekly call option/ put option graph is not available in Trading.com..??

    Reply
  • pravin bardolia

    October 24, 2019

    nice sir is it always useful that mvwap and daily vwap combing?

    Reply
  • Growing world

    October 24, 2019

    Sir plz make more like this videos
    tq sir

    Reply
  • Lalchand Balotia

    October 24, 2019

    Happy Diwali Bhai.. ❀️❀️❀️Bless you πŸ’―πŸ’―β€οΈβ€οΈπŸ™βš›οΈ

    Reply
  • Poonam Patel

    October 24, 2019

    Superb learning πŸ‘ŒπŸ˜Š keep sharing such videos

    Reply
  • Mohammed Boxwala

    October 24, 2019

    yes sure would like such educative videos

    Reply
  • kkmb

    October 27, 2019

    Wish you a happy Diwali. Have a nice time.

    Reply
  • Rajni Rajput

    October 27, 2019

    Hi sir, Happy'Diwali.

    Reply
  • Ashwini Sinha

    October 27, 2019

    Sir wish u a very happy diwali
    Sir,on a very serious note i am asking from u , i come from IT background but i want to take my career in this field. From 6 month im into stocks market not fruitful .
    I need ur suggestions can i take this as main source of income or i will quit. Too much confusion.
    Is not revelnt but plz reply me as soon as possible

    Reply
  • Bhau Kharde

    October 28, 2019

    Thank you Sir

    Reply
  • Raju Kanunga

    October 28, 2019

    Hi Sirji., Happy Deepavali !! Excellent one ..Thanks.. Sir, In zerodha / Sharekhan platform there is no MVWAP, is there any clue how to plot on Zerodha or Sharekhan .. Do guide sir. Thanks once again !!

    Reply
  • V R

    October 28, 2019

    Do MVWAP and MAWA (moving average volume-weighted) are the same? If yes what is the period you are using?

    Reply
  • jitendra Vasoya

    October 29, 2019

    dhaniyvad sir 🌸🌹🌸🌹

    Reply
  • jitendra Vasoya

    October 29, 2019

    Dhaniyvad sir 🌸🌹🌸🌹

    Reply
  • jitendra Vasoya

    October 29, 2019

    Hindi me bataye

    Reply

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