Here’s the thread of info that I couldn’t trade NAS without
These tips are valuable to me and are include a few things I base my systems around
If you find any value, feel free to like and retweet
Welcome to my Ted Talk
These tips are valuable to me and are include a few things I base my systems around
If you find any value, feel free to like and retweet
Welcome to my Ted Talk
1. If you want to be able to get consistent gains out of indices, you MUST avoid the 9:30 est open
My rule is to wait 30 minutes before I take a trade, but 15-20 can be enough on some days
When these opening trades work they WORK, but when they don’t they DONT!
STAY AWAY
My rule is to wait 30 minutes before I take a trade, but 15-20 can be enough on some days
When these opening trades work they WORK, but when they don’t they DONT!
STAY AWAY
2. VWAP - Volume Weighted Average Price
Most forex traders don’t use VWAP or volume because of how the volume is calculated, but in the stock market, VWAP IS KING 👑
VWAP gauges supply and demand based on VOLUME (Actual Buys/Sells)
Think of VWAP as a Retail Price, the average price that traders have paid on that particular day.
If demand is high for any asset it’s going to move away from that retail price and that’s what happens when we get strong uptrends
My rule is to only buy/sell if price is ATLEAST .30% away from VWAP. This ensures either buyers or sellers are in control
Most forex traders don’t use VWAP or volume because of how the volume is calculated, but in the stock market, VWAP IS KING 👑
VWAP gauges supply and demand based on VOLUME (Actual Buys/Sells)
Think of VWAP as a Retail Price, the average price that traders have paid on that particular day.
If demand is high for any asset it’s going to move away from that retail price and that’s what happens when we get strong uptrends
My rule is to only buy/sell if price is ATLEAST .30% away from VWAP. This ensures either buyers or sellers are in control
Use VWAP to Identify Indecision in the Market
If nobody is in control of the market, buyers/sellers
We will not move far away from VWAP aka our retail price
It’s even more evident when we go back and forth across VWAP, it’s clear that nobody is in control and we will likely range on the day.
You could develop a system around mean reversion to trade these days, or take it as a signal to stay out of the market
I usually use it as a signal to leave
Look at the picture below, and look at the VWAP crosses, as a trend trader I would have gotten eaten up trading this, luckily I have a system to avoid it
Look at the pictures on the next part of the thread and notice how we only have about 1-2 crosses on a nice trend day 😉
If nobody is in control of the market, buyers/sellers
We will not move far away from VWAP aka our retail price
It’s even more evident when we go back and forth across VWAP, it’s clear that nobody is in control and we will likely range on the day.
You could develop a system around mean reversion to trade these days, or take it as a signal to stay out of the market
I usually use it as a signal to leave
Look at the picture below, and look at the VWAP crosses, as a trend trader I would have gotten eaten up trading this, luckily I have a system to avoid it
Look at the pictures on the next part of the thread and notice how we only have about 1-2 crosses on a nice trend day 😉
Use time-phases to time your trades/build setups
On a classic trend day I know what time of days my setups occur
For example, most high momentum trades will be between 9:30-10am
After that I expect price to slow down but still trend until about 11:30am - This is when I trade Wave Rider
Between 12 & 2pm at the latest traders go on lunch and this causes more macro pullbacks if we are in fact going to continue to trend in the afternoon session 1-3pm - This is when I look for a Wave Rider Deep Cut (A Deep Retracement)
Most days won’t be this textbook
The first image is the quick moves in the first 30 minutes
The second highlights a deep cut (macro) retracement
On a classic trend day I know what time of days my setups occur
For example, most high momentum trades will be between 9:30-10am
After that I expect price to slow down but still trend until about 11:30am - This is when I trade Wave Rider
Between 12 & 2pm at the latest traders go on lunch and this causes more macro pullbacks if we are in fact going to continue to trend in the afternoon session 1-3pm - This is when I look for a Wave Rider Deep Cut (A Deep Retracement)
Most days won’t be this textbook
The first image is the quick moves in the first 30 minutes
The second highlights a deep cut (macro) retracement
Use stock market catalysts, not just world news
There’s something called “earnings season” that is a period of time where very big companies report how much they made/loss and post company updates (a nutshell)
I trade NAS which is a tech indice, I have to pay close attention to tech company earnings. If I don’t know, the context behind my trades will be completely off
This is completely different than forex currency pairs
There’s something called “earnings season” that is a period of time where very big companies report how much they made/loss and post company updates (a nutshell)
I trade NAS which is a tech indice, I have to pay close attention to tech company earnings. If I don’t know, the context behind my trades will be completely off
This is completely different than forex currency pairs
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