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Mastering indicator vwap

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VWAP Indicator

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Mastering indicator vwap

  1. 1. Become Master Indicator Trader Webpage: www.xpertnifty.in | WhatsApp “HI” to +91 8141838244 | Telegram:
  2. 2. Disclosure The views expressed in this Session are entirely of the authors, for the Education purpose only and they are not responsible for any losses caused due to these opinions or views. The views are based upon the logic, valuations and reasons. Yet, they might go materially wrong owing to market sentiments and future developments. Participants should do their own home-work and even deep study on each and every point This is only and only for private circulation, This session is totally free “Seva”. Seek yours’ professional’s advice and golden guidance before acting on any recommendation. Webpage: www.xpertnifty.in | WhatsApp “HI” to +91 8141838244 | Telegram: Mitul Mehta, Founder & CEO, BIMI Consultant, Author, Trader, Investor, Mentor
  3. 3. Topic • 1. Indicators • 2. VWAP • 3. Option Chain • 4. Question & Answer • 5. Information on Professional Traders League. • 6. Scrip selection for Intraday. (If time permits) Webpage: www.xpertnifty.in | WhatsApp “HI” to +91 8141838244 | Telegram:
  4. 4. Types of indicators 1. Leading Indicators • Leading Indicators. • Leading indicators are those created to precede the price movements of a security giving predictive qualities. Two of the most well-known leading indicators are the Relative Strength Index (RSI) and the Stochastics Oscillator. Legging Indicators • lagging indicator • is one that follows price movements and has less predictive qualities. The most well-known lagging indicators are the moving averages and Bollinger Bands®. The usefulness of these indicators tends to be lower during non-trending periods but highly useful during trending periods. This is due to the fact that lagging indicators tend to focus more on the trend and produce fewer buy-and-sell signals. 1. Leading Indicators • Leading Indicators. • Leading indicators are those created to precede the price movements of a security giving predictive qualities. Two of the most well-known leading indicators are the Relative Strength Index (RSI) and the Stochastics Oscillator. Legging Indicators • lagging indicator • is one that follows price movements and has less predictive qualities. The most well-known lagging indicators are the moving averages and Bollinger Bands®. The usefulness of these indicators tends to be lower during non-trending periods but highly useful during trending periods. This is due to the fact that lagging indicators tend to focus more on the trend and produce fewer buy-and-sell signals. Webpage: www.xpertnifty.in | WhatsApp “HI” to +91 8141838244 | Telegram:
  5. 5. 2. Volume-Weighted Average Price (VWAP) The VWAP can be calculated over the entire trading session • The VWAP study calculates the volume-weighted average price throughout the trading session. • The starting bar can be: – Start of the day – Start of session • Choose any of the following bar values for the VWAP calculation: – Open – High – Low – Close – Mid-point price – HLC/3 Key Benefit: The VWAP study provides the current estimated volume-weighted average price for traders needing the information to manage orders. Webpage: www.xpertnifty.in | WhatsApp “HI” to +91 8141838244 | Telegram:
  6. 6. Amibroker AFL Webpage: www.xpertnifty.in | WhatsApp “HI” to +91 8141838244
  7. 7. Volume Weighted Average Price Signals Webpage: www.xpertnifty.in | WhatsApp “HI” to +91 8141838244 | Telegram: The signals from the VWAP could be confusing at some point. The reason for this is that the same signal from the indicator could be interpreted in two different ways. The signals from the VWAP could be confusing at some point. The reason for this is that the same signal from the indicator could be interpreted in two different ways.
  8. 8. Webpage: www.xpertnifty.in | WhatsApp “HI” to +91 8141838244 | Telegram: Support and Resistance with the VWAP The Volume Weighted Average Price line could be used as a support or resistance for the price action. Since the indicator averages the total periods for the day, it has psychological meaning on the chart. If the price approaches the VWAP line from below and starts hesitating in the area, then the VWAP may be considered resistance. If this happens in the opposite direction, then the indicator might be able to support the price, creating a bullish bounce. Below you will see an example of the VWAP as an effective support: Support and Resistance with the VWAP The Volume Weighted Average Price line could be used as a support or resistance for the price action. Since the indicator averages the total periods for the day, it has psychological meaning on the chart. If the price approaches the VWAP line from below and starts hesitating in the area, then the VWAP may be considered resistance. If this happens in the opposite direction, then the indicator might be able to support the price, creating a bullish bounce. Below you will see an example of the VWAP as an effective support:
  9. 9. Webpage: www.xpertnifty.in | WhatsApp “HI” to +91 8141838244 | Telegram: VWAP Breakout When the price goes above the VWAP indicator this means that the strength of the bullish move is strong. It is so strong that the price has managed to break its average value on the chart. Therefore, we get a long signal. The same is in force for a bearish breakout, but in the opposite direction. At the same time, if at the end of the trading day the VWAP is smooth, but visibly inclined, this speaks of a strong trend. Have a look at the image below: VWAP Breakout When the price goes above the VWAP indicator this means that the strength of the bullish move is strong. It is so strong that the price has managed to break its average value on the chart. Therefore, we get a long signal. The same is in force for a bearish breakout, but in the opposite direction. At the same time, if at the end of the trading day the VWAP is smooth, but visibly inclined, this speaks of a strong trend. Have a look at the image below:
  10. 10. Webpage: www.xpertnifty.in | WhatsApp “HI” to +91 8141838244 | Telegram: ------------------------------- Other Event Details: ------------------------------- 31-July : PTC – Live Market Trading 01-Aug : Free Seminar - Live Market Trading 04-Aug : PTC - Ahmedabad 05-Aug : PTC - Ahmedabad 11-Aug : PTC - Hyderabad 12-Aug : PTC - Hyderabad 19-Aug : MIT - Online Paid Seminar ------------------------------- Other Event Details: ------------------------------- 31-July : PTC – Live Market Trading 01-Aug : Free Seminar - Live Market Trading 04-Aug : PTC - Ahmedabad 05-Aug : PTC - Ahmedabad 11-Aug : PTC - Hyderabad 12-Aug : PTC - Hyderabad 19-Aug : MIT - Online Paid Seminar

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