• Skip to primary navigation
  • Skip to main content
  • Skip to footer

866-878-9209

support@topdogtrading.com

  • Facebook
  • Twitter
  • YouTube
Top Dog Trading

Top Dog Trading

Learn Day Trading and Forex Trading

  • HOME
  • ABOUT
    • TOP DOG TRADING REVIEWS
  • RESULTS
  • PRODUCTS
    • COURSES & SOFTWARE
    • FREE TRADE STRATEGY
    • SECRETS
    • BEST STUFF
  • BLOG
CONTACT US

VWAP Day Trading Strategy- Part 2

You are here: Home / Technical Analysis / VWAP Day Trading Strategy- Part 2

July 15, 2021 by Barry Burns

Welcome to part two on the VWAP (volume weighted average price) Indicator Day Trading Strategy.  In part one we talked about trend trading, and in today’s video we’re going to talk about a reversion to the mean style. If you haven’t seen part one, I encourage you to view it, but go ahead and finish this one first, and then you can go view part 1.

Was this video/post VWAP Day Trading Strategy helpful to you? Leave a message in the COMMENTS section at the bottom of this page. 

PLEASE “PAY IT FORWARD” BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.

As a quick review, the VWAP, volume, weighted, average price, is this black line here. (See video) That’s kind of the neutral area and as you can see the market is below it. Here we have a trending market, and this is what we discussed in the first video. We retrace to it, and down we go, and that’s a thing of beauty. It doesn’t always do that, but that is how we would do it for trend trading. Now, I want to show you how we set up this indicator which will be the opposite of trend trading.

VWAP Indicator Day Trading Strategy

You’ll see in this video, I am using the standard deviations multiplier, one, two, and three, and that’s key to what we’re going to use in our trading today. We’ve got our volume, weighted, average price here, or VWAP, and our standard deviations above and below, and I like to use three lines. We like to see this stay below the volume, weighted, average price, and also to stay in this channel and zone down.

Then we break down here to the standard deviation. We come back up, and go down to reach the lowest standard deviation line. I’ve got three lines below, and three above. For this particular setup, we’re talking about the third one, either above or below, and in this case it’s below. That’s considered an extreme reading, and it doesn’t reach that third line often. A lot of the best trades that are the highest probabilities don’t occur very often.

They’re unusual, or extreme and that’s what we’re looking for. To trade that back to normality, or back to a statistical mean. This is one of those examples, so we wait for this puppy dog to go ahead and crank down to the third one again. This is not going to happen every day on every stock. Not even close, and it will not happen most days. We’re waiting for when it does happen, and then we’re gonna trade this back to the VWAP, volume, weighted, average price. This is a reversion to the mean type of statistical model, and the opposite of trend trading.

Wrapping Up!

We’re looking for the market to get overextended, or some people would say oversold, and then for it to get back to technically a mean. Remember the volume, weighted, average, price is a little different than a moving average. It incorporates volume into it as well, and it’s cumulative. Thank you for being here today, and remember to go back and watch VWAP Indicator Trading Strategy, Part 1.

If you found this video helpful, please give it a thumbs up. I don’t charge for these and I don’t run advertising in my videos so these do not generate income. I do them for you, so the best thing you can do is to pay it forward to somebody else by sharing the video. If you have any requests for future videos, like I said, this one is in response to requests, so feel free to type your video request in the comments below.

Free Offer!

It’s good to share good things with good people. I have a very specific trade strategy that I want to share with you all the details of my Rubber Band Trade Strategy. It’s one of my favorite trade setups that I take all the time to this day. It still works, been working for decades. And I’m happy to share with you all the rules, the entries, the exits, all the details of it.

It’s about a 26 minute video that I will give you absolutely free. Just go ahead and click on the link in the top right-hand corner of this video or the link in the description below. As soon as you do that, I will email to you the Rubber Band Trade Strategy.

What did you think of this Williams R Indicator tutorial? Enter your answer in the COMMENTS section at the bottom of this page.

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.

FREE GIFT!

Also, I’m giving away one of my favorite Best Moving Average strategies that work in trading the markets. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with the first video.

Those interested in Best Moving Average video that works in today’s markets also showed an interest in this video:
https://www.topdogtrading.com/best-trading-indicators-day-swing-trading/

Subscribe to my YouTube Channel for notifications when my newest free videos are released by clicking here:
https://www.youtube.com/user/TopDogTrading?sub_confirmation=1

Technical Analysis Barry Burns,  day trading strategies,  Price Action Trading Strategies,  stock market strategies,  stock market volume,  Technical Analysis,  top dog trading,  trading indicator,  trading price action,  trend trading indicators,  trend trading strategies,  VWAP Indicator

FREE TRADE STRATEGY!

You'll receive one of my favorite setups for E-mini trading, Forex day trading and stock market trading: "The Rubber Band Trade."You'll receive it on day 4 of my FREE 5-Day Video Mini-Course: "Make Money by Breaking Every DayTrading Rule You Ever Learned!"To get the setup for "The Rubber Band Trade," your subscription to my newsletter, special promotions from me and my valued trading associates, and the 5-Day Video Stock, Emini and Forex Training, simply fill out the form below.You'll instantly receive an email with the link to your first video lesson TODAY.

GET IT NOW

Footer

Top Dog Trading

866-878-9209

support@topdogtrading.com

15030 Ventura Blvd, #618
Sherman Oaks, CA 91403

Sitemap

  • Home
  • About
  • Best Stuff
  • BLOG
  • Contact Us

company

  • Terms of Service Page
  • Privacy Policy
  • Risk Disclosure
  • FREE SUBSCRIPTION
  • COURSE REVIEW

This site makes use of cookies which may contain tracking information about visitors. By continuing to browse this site you agree to our use of cookies. CLICK HERE to learn more. Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.

 

RISK DISCLOSURE

 

These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.

 

IF YOU DO NOT AGREE WITH THE TERMS OF THIS DISCLAIMER, PLEASE EXIT THIS SITE IMMEDIATELY. PLEASE BE ADVISED THAT YOUR CONTINUED USE OF THIS SITE OR THE INFORMATION PROVIDED HEREIN SHALL INDICATE YOUR CONSENT AND AGREEMENT TO THESE TERMS.

 

The information contained on this site is for informational and educational purposes only. We are not registered as a securities broker-dealer or as investment advisers, either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Trading and investing involves substantial risk. Financial loss, even above the amount invested, is possible and common. Seek the services of a competent professional person before investing or trading with money.

 

Neither the information contained on this site, nor in any other place, is provided to any particular individual with a view toward their individual circumstances and nothing on this site should be construed as investment or trading advice. Each individual should assume that all information contained on this site is not trustworthy unless verified by their own independent research. There is a substantial risk for loss when trading securities as they are highly susceptible to the risks and uncertainties of certain economic conditions. For all these reasons and others, your use of the information provided on this site, or any other products or services, should be based upon your own due diligence and judgment of how best to use the information, and subsequently independently verified by a licensed broker, investment advisor or financial planner.

 

Any statements and/or examples of earnings or income, including hypothetical or simulated performance results, are solely for illustrative purposes and are not to be considered as average earnings. Prior successes and past performance with regards to earnings and income are not an indication of potential future success or performance. There can be no assurances of future success or performance and we will not be responsible for the success or failure of any individual or entity which implements information received from this site.

 

WE DO NOT IMPLY, PREDICT, OR GUARANTEE THAT YOU WILL BE SUCCESSFUL IN EARNING ANY MONEY WHATSOEVER. IF YOU RELY UPON ANY FIGURES OR INFORMATION ON THIS SITE, YOU MUST ACCEPT THE RISK OF SUBSTANTIAL TRADING LOSSES.

 

Past results of any individual trader are not indicative of future returns by that trader, and are not indicative of future returns which may be realized by you. Neither the author nor publisher assume responsibility or liability for your trading and investment results. This site and all information therein is provided for informational and educational purposes only and should not be construed as investment advice. The author and/or publisher may hold positions in the stocks, futures or industries discussed here. You should not rely solely on this Information in making any investment. You need to do your own independent research in order to allow you to form your own opinion regarding investments and trading strategies.

 

It should not be assumed that the information in this web site will result in you being a profitable trader or that it will not result in losses. Past results are not necessarily indicative of future results. You should never trade with money you cannot afford to lose.

 

The information in this site is for educational purposes only and in no way a solicitation of any order to buy or sell. The author and publisher assume no responsibility for your trading results. There is an extremely high risk in trading. This information is provided “AS IS,” without any implied or express warranty as to its performance or to the results that may be obtained by using the information. Factual statements in this site are made as of the date the information was created and are subject to change without notice.

 

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

 

  • Facebook
  • Twitter
  • YouTube

Copyright © 2023 Top Dog Trading. All rights reserved. Return to top