How to use VWAP?

Buy above VWAP and sell below VWAP ❌❌❌

Read further to learn how to use VWAP in a better way.

(1/n) What is VWAP? VWAP stands for volume weighted average price.

It is the average price a stock is trading both from a price and volume perspective.

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Many traders struggle to identify trend reversals in intraday trading.

But you do not have to be one of them! Read further to understand how you can spot trend reversals and enter early before the crowd.

(1/n) Example: Market is in a downtrend. To reverse to uptrend, one of the following should happen:

✅ Buyers should absorb the sell orders and start buying at market orders.
✅ Sellers should be exhausted and show no interest in further selling n buyers should use the chance

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How to use fixed range volume profile for analysis:

(1/n) Fixed range volume profile (FRVP) is a very powerful tool to understand volume presence in a stock.

Hack 1 : Use one timeframe higher than your timeframe of trading.

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Advanced strategy for scalping and identifying market direction using VWAP and VWAP variances

What is VWAP? Vwap stands for volume-weighted average price. It is the average price at which a stock trades over a period of time taking into consideration volumes traded.

(1/n) Most traders use vwap as a signal to buy or sell without understanding the market context which gives losses.

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Anchored VWAP tips and tricks:

Many traders use VWAP as part of their trading. An extension of VWAP is Anchored VWAP.

It is VWAP used from a custom starting point to an ending point.

(1/n) Expiry cycle:

We have a weekly expiry cycle from friday to thursday.

Starting wednesday, I monitor the AVWAP from last friday. This helps me understand the crucial reference points from volume*price perspective.

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Why does the market move in opposite direction of delta?

(1/n) A lot of new orderflow traders use delta as a measure to determine market strength.

Higher positive delta - More buying side pressure.
Lower negative delta - More selling side pressure.

THIS IS WRONG!

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NIfty and Bank Nifty - Volume analysis perspective for 04-07-2023

Nifty: Good demand seen today compared to BN (by closing).

15 mins ORB for longs if gap up and 19360F is reference for shorts with initial target as 19290F

(1/n) Orderflow indicated large absorptions at high. A gap up can send those guys running.

This becomes a good reference if we open flat or a few pts lower.

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A lot of traders enter at breakouts or breakdowns only for stop loss to hit later.

Learn these techniques to avoid false moves and get confidence in trading breakouts

(1/n) Retail trader draws support zone and the moment market breaks support, they enter shorts.

But sometime later, price reverses hitting stop loss.

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Technical analysis tricks which can increase your accuracy by 3 times!

Many traders use technical analysis but do not know these hacks. Learn these hacks to improve your TA game!

(1/n) Higher timeframe analysis: Starting point of your analysis should be one timeframe higher.

Even if you are a day trader, if you focus on one timeframe up, you can find important price areas and identify big moves easily.

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Decoding Bank Nifty movements for today and trading plan for tomorrow:

Yesterday's late noon pullback and value built at upper end indictated supply is getting weak.

(1/7) Price bounced from composite delta bands yesterday indicated buyers defending their positions.

We opened above them and cleaned yday highs in opening 5 mins.

Bulls were in perfect position to break swing highs and print a new ATH in BN (at least spot)

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Decoding Nifty's movement today and what to expect tomorrow:

We had a P shape profile with close at lower range yesterday indicating poor demand in the markets.

(1/n) Today's opening was flat with sellers showing some interest right at open.

Plus considering we saw supply come in yesterday at 3 PM, started selling into the market with stops above 3 PM supply

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Unlock the power of cumulative delta! 📈💰 (Surprise giveaway inside!)

Before we discuss cumulative delta, let's talk about delta in general.

(1/n) Diving into delta:
Delta in volume analysis signifies the difference between buy and sell orders at a specific price or candle. 🔥

If 100 lots of Nifty were bought and 50 lots sold from 10:00-10:05 AM, the delta is 50. 📊

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Technical analysis you need to understand to become a successful intraday trader:

--> Tool to identify trend and intent of the move (volumes)
--> Location to place a trade
--> Measure momentum
--> Method to gauge volatility
--> Probable extent of the current move

(1/n) Trend: As a trader, you need to understand the current market direction and the intent behind the move.

Understanding whether a move is triggered by fresh buying, existing buyers defending their positions or due to sellers covering their positions is important.

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Learn to identify market structure and how to minimize losses and maximize profits in a range-bound market:

Price action traders check if market is trading in previous period's range and conclude if markets are range bound or trending.

(1/n) As a volume based trader, apart from price range, I check how is the volume distribution over a period of time.

If most of the volumes (value area) is spread in the middle of a period's range with close inside value area (optional), it is called as a balanced profile.

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Trading plan for the week:

Three weeks of balanced rotations in Nifty. Imp references are marked in chart.

Break below 18K can invite fresh sellers. For longs, will wait for 18230F to be taken out as initiation failed once already this week.

(1/4) Lets look at 30 mins OF chart to learn more.

Red rectangles are where buyers stepped in strongly in recent past.

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Things which made huge positive changes to my trading:

1. Removing daily profit targets:

Having a daily target puts unnecessary pressure on performance.

The goal of a trader is to execute their plan in best possible way.

(1/n) Having daily profit targets put pressure on mind and a trader will not be able to focus on their plan

2. Setup hopping:

Instead of trying different tools and setups, I focused on one or two. It opened up insights about those tools which were missing before.

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How to use orderflow to find strong trending days:

A thread 🧵

(1/n) Opening of the market is important. Where we open and how we move in opening 5 mins shows the intent and aggression of large players.

Today we opened right at previous week value area low and started moving up.

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Important risk management points and how to use them:

A 🧵

#StockMarkets

(1/n) Risk management is the core of trading. No matter how good of a setup we have; if we do not manage risk, properly, trader will not be profitable in the long run.

As a discretionary trader, I follow certain rules for managing risk

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How do I use VWAP in different kinds of market?

(1/n) As most of us know, VWAP stands for volume weighted average price. It is the avg price of the stock or index taking into consideration volumes traded in it.

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How to find high probability intraday reversal trades?

(1/n) One of the challenges a day trader faces is to identify whether the chances of trend continuation in direction of open is higher

or if

market will reverse and change trend on intraday basis.

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Introduction to imbalance charts (orderflow trading):

A 🧵

(1/n) Orderflow charts essentially show the real time buying and selling happening in the markets.

In below chart, you can see how market sell orders are shown to the bid side and market buy orders are shown to the ask side.

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