Anchored VWAP Setup: Step-by-Step Trading Guide ⚙️ #VWAP #TradingStrategy

Kenny, once you find that trade, how do you set up the charts using VWAP? Because I know you like to use the anchor VWOP and a lot of people have questions about the settings. So, can you pull up the charts and show us how to set up the VWAP? >> So, here I mean this is what's really great about the way I trade and what's great about this is that it you could set your own template up, you know. So, again, the the regular VWAP, if you are on your interactive chart, obviously you want to be on your interactive chart. So, here's your interactive chart. Now you got to just rightclick and you can get your add indicator right your indicator right here. Lovely anchored VWAP right there. So you're going to click on that and put it on the chart. And then at the same time you want to scroll down to the bottom and get in there and get your VWAP and click on that and it'll populate it right on the chart. The secret sauce, again, this is the secret sauce. We used to charge $3,000 for this information, folks. Um, it's where we anchor it to. And this is just from just careful just using it. You know, again, people like to use that word back test to sound fancy. This is just me using it. So, what I've done is I just grabbed the data set. So, if you if you rightclick right on this, you'll see it and you go to the settings. There's the anchored VWAP right now on the chart. What I have it set to is basically the prior day that starts at 1:00 in the morning with the high, low, close, and three. And I just put it in orange because I just been using orange my whole life. And a little dotted that little dot is just to make sure you understand that it's different from today's VWAP. So you got today's VWAP which starts roughly 4 a.m. you know again depending on how much data you're getting. Really volume weight average price is all about collecting the data. And that's why it's so important because what you're learning from VWAP is where the institutional money went. And that means a lot more than where my 500 shares are or any any group of us are buying or selling. We're just basically insignificant fleas on the back of the institutions. So we want to know where the institutional money comes. So once you have that knowledge, you could just play with the big boys and then comes your earnings gap reversions. So if you want me to keep, you know, I just I'll keep on rolling. I'll just walk walk you through this chart right here. >> Yeah. So, cuz I know uh with the blue line, that's your essentially your trigger for the trade and then you're using the uh the orange anchored VWAP as your target. Right. >> Right. Well, it depends. So, again, right now you're seeing I'm going to show you four or five varieties. Really, what what I've learned over 30ome years is I just let the market tell me what to do. I just let the VWAP tell me what to do. So if the anchored VWAP is above the blue line, basically you what you're looking for, especially on a stock that's gapped down on this one was I think we're looking at the credo right here. This was a unique situation and also an indication that this market is really bearish right now to the tech stocks because what you normally see is you see a fight, you know, usually see a fight with a stock's gap down so dramatically like a credto that this is a chip stock. you will put up a fight. And in this case, the only fight that it put up, which was a decent trade in itself, was right here at about 8:30 in the morning. So, when you're traveling below the VWAP on a gap down stock, we're just looking for that break of today's VWAP. And again, we at at at the time we were in this trade in the pre-market, obviously, our target was the upside, but we never got there. So, the pre-market activity was telling us there's something wrong with this stock and we probably don't want to be involved because it was really having some hard time just getting anything going to the upside. So, usually if we're trading pre-market again, there was our buy right there around 185. The stock did tack on five or six points. And for us day traders, you know, again, you buy 200 shares, you make a five point, you're making five points, that's $1,000. So, you're having a pretty good morning already. This is, you know, this is what people dream about. And it really is sometimes that simple because this is the hardest thing anybody does with their lives, trading. This is the easiest form of trading in the hardest thing you're ever going to attempt in your life. And what it does is it also instills the discipline in you. For instance, let's say you decided you want to buy the credo and you're like, "All right, this is working out pretty good." And you also know that if a stock breaks today's VWAP, more often than not, it's going in that direction. Look at what happened here. This thing got absolutely trashed when it got through the VWAP. And again, we went from thinking we're going to be buying this stock to it breaks the VWAP and then it breaks the pre-market lows. That's our indication to say, "Forget bullishness. We're we're shorting this bad boy." And it was a short all day and never really recovered. So really really again an indication of bearishness on the overall tech sector right now. But let me just show you another chart while I got you here. Um this was just and this is all right off the earnings, right? So this is a company called uh GitLab. And again, you'll get a kick out of this comment. I have no idea what any of these companies do. Most of them, you know, I'm all about the gaps and just trading what I see in the market, right? So right here, this is a typical trade of ours, right? So again, with GitLab, a gapped up stock that had already run into earnings, we're anticipating some profit taking. So when does that profit taking ensue? Blue line break. And look how it went to the orange line. Poof. Right there. This is a threeinut trade and you made six points. And I don't want to ruin the surprise, but look at how it just traveled between the orange and the blue all day as if the market's telling you this is it. So now when you see it holding the orange, that's the prior day VWAP and establishing itself right there. We were already done with the short within three minutes. Now the stock's telling us, hey, you know what? You got a limited risk trade here. Why not take that long trade on the VWAP break and use the prior day VWAP as your stop and we got paid a little bit here. And then when it rolled back over, we got stopped out here and then stopped out there. But still, we make money on the way up and then we sell in increments on the way down. And that's why when I say VWAP and again a lot of people get kicked out of this one too. VWAP saved my life. All right. Because it was a point where I just I lost my way and it was right in my transition stage. I think I guess 2010 2011 2012 really wasn't great for me because the market was coming out of the the the that great depression and it was just running every day and my bearishness got a hold of me. If I had VWAP telling me I was wrong about all those shorts, it would have saved me a lot of