– [Instructor]
Welcome to the video on applications of
VWAP Trading Strategy. In this part I will be showing
you how I traded with VWAP indicator in the
month of August 2019. I’ll be discussing my entry,
exits along with how I analyze charts when it comes
to intraday trading. I have covered day
trading in great depth, and link to all those
videos along with the video on VWAP indicator will come up at top right end of your
screen, so let’s get started. In this video, I’ll be
showing you how to implement VWAP Trading Strategy
in real time. I’ll be sharing my trades
here and I’ll be explaining my thought process behind
each of these trades. Now, what I’m going
to explain here, is not based on
hindsight benefit, but
these were the trades that I took in my own
account and updated it in the channel
community section. Link to our community section
would come up in front of you and order book details of each
trade is posted over there. So let us begin with the
trades I did last month, so that you can
understand my process of using VWAP indicator
in Day Trading. Now I’m planning to make
this a regular feature to explain my trades at
the end of each month, and if you would like
to see such videos, then do let me know in the
comments section below. In this first trade
entry was taken at 221, whereas trade was exited at 256. For this trade, I had selected weekly
options as the instrument. Entry in this trade was
pretty straightforward, based on the concepts discussed in the VWAP Trading
Strategy video. Price opened above this
high-volume node here, and VWAP indicator
moved above the MVWAP, that is Moving Average
of VWAP Indicator. Once the entry
candle was formed, I then took entry in call option of the underlying instrument. Now do note here that I
refer to future charts to take entry in the trade, and I don’t use
options chart as such. Now in the later
slides, I will show you candle volume charts
for this trade for you to understand
price action better. So let us now discuss
about exiting the trade. Entry in this trade was
taken after this candle that I’ve marked, and post
this, price did move sideways without retracing
deep into this candle. Do note hear that during
such retracements you have to maintain your calm
as many traders exit here, thinking that
reversal is in place. Once you are in trade, the
only point you exit the trade is when stop loss is hit, or
when trade works in your favor. In between, I will suggest
that you should maintain calm and don’t get distracted
by whatever is going on. In this chart, despite the
retracement that you see in this section, I finally
exited the trade in the region I’ve marked here. This exit was the result of
bearish engulfing pattern and then due to the follow
up wide range candle that I’ve marked in this region. Let me now explain this
through candle volume chart. So this is the candle volume
chart for the same trade. If you look at entry candle, look at the width of this
candle it clearly represents presence of strong
buyers in the market. The retracement in this region
is on back of less volumes when you compare it
with bullish candles when the market had opened. Look at this region
that I’ve marked. Post this, price moved
higher with bullish candles, which clearly had more volumes when you compare it with
bearish candles in this section. As the day came towards the end, look at this section
where some bit of volumes did start to pick up. Now when you are day
trading, do keep a tab on counter trend volumes. These are pivotal in
helping you decide when to exit your trades,
and when to hold them. I hope this aspect is clear. In this second trade,
entry was taken at 63 whereas trade was exited at 298. This was again weekly
options that I had selected. If you look at the chart, while
this candle was developing, I decided to take an
entry into call option. Now high volume node
area for the chart is marked in this region
and with this wide range bullish candle, price went
past both high volume node and VWAP indicator. Do take a note of price action at this well established
resistance region. Every time that price came
close to crossing this, it faced momentum
on the downside. This was a clear sign of supply
visible at higher levels. Now, once price moved above
this resistance region, it was clear that it
was heading higher. Do note that price
moving above or below an established resistance
and support level should always be
watched closely. Let us now discuss the exit
conditions within this trade. So, before we discuss
the exit section, let us now take a look
at candle volume chart. In this chart, look at the
width of the entry candle here. When I spotted this on chart, I knew breakout above
the resistance region is coming on back
off strong volumes. This was an indication
of strong participants entering the market and
along with price being above the high volume node,
and VWAP indicator, this was one more cue for
me to initiate a long trade. Now, exiting this trade
was not difficult. I exited it pretty closely
towards the end of session, primarily based on how candles
were forming on the chart. If you look at the chart, after the wide range
bullish candle, there was not a
single bearish candle that formed on the chart. This meant there were no
stronger players in the market, who were willing to counter
the underlying demand. Look at all these candles here. Most bearish candles that
are formed are indecisive and narrow in range. So this is how you need to judge who is present in the
market and who is dominating the current underlying trend. In this third trade
entry was taken at 271, whereas trade was exited at
203 as the stop loss was hit. This was again weekly
options that I had selected as an instrument. If you look at this chart
price opened with the gap in this region, with the
reasonably strong demand candle. Opening was also above the
nearest high volume node region, and VWAP indicator was clearly
above the moving average of VWAP indicator,
that is the MVWAP. Back then, I did think that
entry in this trade was viable, and I also thought that this
was a high probability setup. Price did have some
retracement in this region, but this was fine as gaps do
tend to fill out sometimes. We then had this bullish
engulfing pattern here, and this gave me
further confidence to hold on to this trade. Let me now show you what
happened as session progressed. Now as session progressed, price did attempt
to move higher here. But if you look at this region, price repeatedly faced
resistance to get past this. Now signs were definitely there
for this trade to be exited, but back then I was convinced about momentum returning
later in the day, and was completely biased about my reading
over price structure. As finally price
started moving lower, I did exit the trade
in this region. So on a trade where
I should have taken only 5 to 10% loss, I
ended up taking 30% loss, due to failing to
see the obvious signs of price finding it
difficult to move higher. See at times this will
happen to as well, the important thing however, is for you to not get
too concerned with this. As far as there is some element
of humaneness within us, such things will
repeatedly happen. So just take note of this
and move on to next trade. This is your psychological
makeup that you have to carry. So this is the candle volume
chart for the same trade. Now in this trade, one of the reasons I was
convinced about trade working was the range of bearish
candles on the chart. Until this point
that I’ve marked range of all counter
trend candles was narrow, and hence I did not see presence of strong sellers in the market. Even the entry candle here
was on back of good volumes and this was one
more sign of presence of strong buyers in the market. And this candle that are marked, I should have been cautious, but then I failed to put
this in the larger context. Do note that price volume
analysis is absolutely crucial when it comes to
assessing demand and
supply in Day Trading. I have covered this last
week in a separate video and in case you missed it, link would come up at top
right end of your screen. In this fourth trade,
entry was taken at 114 whereas trade was exited at 552. This was again weekly options that I had selected
as an instrument. Now price opened here
below the high volume node and opening candle was
also wide in range. The same is marked
in this region. VWAP indicator was also
below the MVWAP indicator, and bias for trend
was clearly down. Now before we move forward, let me first discuss
the psychological
impact of this candle that I’ve marked. Once price has fallen
in the very short term, it is very difficult to
initiate a fresh trade as the odds of retracement
are always high. This is one of the main reasons why traders don’t
initiate a trade, when they see such
candles on the chart. Do note here that trade
should be taken here, and this is just a
psychological barrier that you need to overcome. In case you’re
unsure of the trade, then reduce your position size, and tighten up your
stop loss rules, but trade should be
taken at this region. As far as exit for this
trade was concerned, I did so around 3:00 p.m. when momentum was still
strong on the downside. Between 11:30 and 1:30, price
did consolidate sideways, but there was no up movement
that was visible on the chart. Most of the counter trend
candles were narrow in range, and momentum on the
upside was clearly absent. Post 1:30, range extension
again happened on the downside as this was evident with
the wide range candles that are present
in this section. Now do note here that
exit quite often, is one of the most challenging
aspects in trading. But with simple price
volume analysis concepts, you can determine whether
to hold on to a trade, or to exit it. Since counter trend
candles were weak here, there was no reason for me
to exit the trade midway. I hope this is clear. So this is the candle volume
chart for the same trade. If you look at
this entry candle, it was again on back
of strong volumes. Let us now look at this range. Look at the volume
activity in this range. Most counter trend candles did
not have any strong volumes associated with these. Once price again
starts moving lower, look at the wide range and
wide width of these candles. These clearly represents
strong participation on the downside. Now when you spot volumes in
the direction of your trade, it is always important
for you to trust the direction of
trend and to hold on to your existing positions. At no point should
you consider exiting unless you see strong signs
of reversal in the market. Now, I do realize that this
is easier said than done, but with the right amount of
practice this is totally doable on a real time basis as well. In this fifth trade, entry
was taken at 121 to 134, whereas trade was exited at 293. Instruments selection here
is again of weekly options. In this trade price
was already below the high volume node region,
that are marked in this area. If you look at VWAP
indicator as well, it was clearly below
the MVWAP indicator when the market opened. Opening candle here was
again wide in range, and trajectory of price trend
was clearly on the downside. This was again a trade
where initiating a trade would be difficult due to
recent down move in price. Now this is again a
psychological barrier that you have to
cross as a trader. As far as exiting the trade
was concerned for this trade, I exited between
12:20 and 12:30 p.m. when price was still moving
lower with strong momentum. This was a well managed
trade as back in this region, it was very difficult
for me to anticipate price moving higher in
the afternoon session. Exit for this trade if you
see, was based on price falling over 2% for the day, and
prior to the current session price was already down 3% over the last two
to three sessions. So in total price
was down about 5%, and I did feel a short term
bounce was in the offing. Now once this bullish candle
formed in this region, I decided to close
out the position, as this was the
first bullish candle post the morning session. Even range of this
bullish candle was wide, and hence this
provided an opportunity for me to exit the trade. Let me now show you candle
volume chart of same, to help you understand
this better. So, this is the candle volume
chart for the same trade. The opening candle
here was wide in range, and this was a good entry
point for the trade. Subsequent counter
trend candles as you see were narrow in range, and did not have any
element of momentum. Look at the down candle,
as price progresses, most candles have more volume
than up candles that we saw. Now, when you’re in the trade
and you spot this on the chart do not be in a hurry
to book out profits. This indicates presence of
strong players in the market, and you should participate with them in the
direction of trend. In this region, we then get a bullish candle
which was wide in range, and which engulfed
this bearish candle. Now, this was my cue to
exit as price at this moment could have staged a reversal. Do note that the concepts
of VWAP indicator that I have covered over the
last three to four videos, are more than enough
for you to become a successful day trader. The important aspect here
is for you to practice this, to become disciplined
and consistent. You will realize that
entry in the trade is a fairly easy process,
but it is the exit conditions which need more
experience and exposure. This does take
some time to come, and therefore
don’t rush yourself into taking some large
positions in the market. If you’re a beginner, then
keep your risk amount fixed for your first 50 trades. So let’s assume that your
account size is 100,000, I would recommend for you to
risk only 1,000 per trade. This way you will gain
experience in the market, and you will lose
limited amount of money. As day trader, you
should aim to trade when conditions are
right in the market. And this would roughly translate to only five to
eight trades a month. So do watch the previous
videos on Day Trading as I have covered many concepts of VWAP indicator
in great detail. Link to all these parts will come up at top
right end of your screen. In the mean time, if
there is any doubt related to what
we have discussed, then let me know in the
comments section below, no matter how basic
your doubt is.

30 thoughts on “VWAP TRADING STRATEGY – 5 REAL TIME Trades (Day Trading) 🔥🔥

  1. VWAP Trading Online Course – https://bit.ly/2P1WxRf
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    Thanks For Watching Guys. Tc & Be Safe.

  2. Good video to learn about technical analysis …. If need to understand the concept of VWAP … I need watch the videos more times… Is it available on the trading view software.. What is the way to understand with in depth knowledge

  3. Hello Raunak, May u please suggest these indicators on Investing.com please..? i sat up with VWAP (volume weighted avg. price) & VWMA (vol. wei. moving avg.) Is this correct..?

  4. Hi sir
    I broke the rule of vwap just below mwap but kind of volume on chart tempted me to take risk and those volume lead to this massive gain in nifty ! Its just because of ur thought process for volume candlesticks u have shared thank you sir

  5. Thanks for this educational video. Could you please share some of your trades and approach in equity FNO. Also, could you please mention which platform are you using to monitor high volume node.. Appreciate your efforts to educate trading community.

  6. sir..
    today i understood.
    simple things are more powerfulll…
    so i cancelled every indicator…
    and evwrything…
    Now i only use
    (.)Vwap+MVwap+Advance/dcline ratio+previous day high or low…
    this much only sir…
    tq so much sir….
    love u r concept…
    i want pray to god….
    plzz send this kind of more persons to earth
    (.)i was really dipressed for days and months…
    i am handsome
    but my proposals are rejectead me for 12 times….by 12 girls…
    now i am happy..
    i learnt to accept me..
    as what i am…❤

  7. Sir you said you use future charts for entry in the trade what data you analyse in future charts is it open interest analysis with volume and price

  8. Sir I'm following your trades in new channel but I have a doubt.
    My doubt is, how your selecting the stocks? Like today you selected TCS

  9. Great video on posting your trades. Really educating. You have mentioned to take 5-8 trades a month. Is this number for beginners or does this also apply for those who are fairly experienced as well. Also how many trades/positions in a day should be taken assuming it is a trending day.

  10. Hi Sir….VWAP trading strategy – 5 real time trades really a great lesson to me. Sir, I am willing receive all your monthly trade videos. Kindly enable me for this facility. Thank you sir…..from next Monday I will be with VWAP trading set up. Only again thank you sir.

  11. Sir, U r an awesome teacher.. no doubt in that but just wanted to know how different this course from ur VWap series in YT. How much minimum capital reqd to actually get benifit from this course. Why there is a diff telegram channel for VWAP only…

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