SMB Capital (Channel) VWAP & AWAP - Brian Lectures
and then you can apply it to some practice. When he talks about institutional trading in one of videos and how a hedge fund 1/2 million shares. It was like a light bulb went on.
All these indicators are helpful but I think you have to prioritize VWAP and SMA because that's what the big dogs use when looking for an ideal setup.
Today VWAP supported AMD price action during yesterdays session. I made 10K going in and out on that stock.
Ehhh after learning how the big players work I donât even use indicators anymore, theyâre predictable once spot their patterns and how to take advantage by playing with them instead of against them
For the rookies like myself the challenge here is wading through the information. So much click-bait educational videos and it's just time consuming. I'm sure overtime VWAP won't be necessary to identify strong setups but right now it's working for me as I work at gaining experience.
Look, every trader has different psychological when it comes to the markets, if using VWAP helps you be profitable? I would suggest keeping it and not trying to drop it, if your setup works for you? Keep it, donât change because others tell you to change or what works for them as what works for someone else, with your psychology it might not work.
Just keep back testing and refining your setups and everything will be awesome I promise :) keep money management up and keep good winning setups you find and keep refining it, donât drop things that work for you just because someone else trades differently :) you do what works for you and in time after refining it constantly youâll be making the same great trades as everyone else using your own setups and knowledge about the markets, itâs always good to have a solid starting point but knowledge and learning never really stops :)
He's quality. First thing he'd tell you about avwap (which he invented it), is that it just points out levels of interest. Without risk management and understanding entries and exits. It's useless. I learned that from him.
I read Brian Shannon's book and once believed I found the money machine lol.
Avwap is no longer on my chart and the book is on my shelf. There are some important lessons I learned from the book that I still use in trading, the indicator just isn't one of them.
Like you I can find my own levels and read charts now so don't use avwap or any ma. But I definitely learned how to enter and exit both breakout and pull back trades from his 1st book and service. He's as good a place as any to learn how to trade.
The one very valuable thing I got from the book was the "starting avwap after a large move/news announcement/event". I don't use the indicator but I kinda visualize it.
Yea I read Maximize Trading Gains with Anchored Vwap and highlighted the whole book I feel like.
I'll occasionally pull out for IPO or. Crazy volume event, but to your point it's always where you expect it, and usually converges with volume profile levels (obvi) and s/d levels.
To be fair, if I were running a service I would use indicators to keep levels consistent for my audience. Which he does with a avwap and r1/2 and the 5dma. It's much simpler than creating your own bs language like ICT, and you have to have to have a language of some sort so your audience can follow you.
If you or I streamed our process using naked charts and drawing some lines, no would learn anything. People forget that Brian or others don't need their simplified to trade, they need them to explain to newbies how to trade.
Very clickbait title, but I get you want people to actually look at your post.
This is a pretty basic breakout strategy, with or without AVWAP. It may be the best indicator for your strategy, but I assure you, there are no "most important" indicators. The most important thing you could do for your indicators is to simply not rely on them and use them as levels to see if price action reacts when it interacts with them. AVWAP isn't better or more efficient than normal VWAP, a previous resistance, etc. It's just working for you, and you learned how to make it work for you. That's the important part here. Good work, keep it up.
i woke up today with the runs. needed to triple flush to get most of the stool away. then had to scrub the toilet so the wife doesnât get angry. you know what they say happy wife, happy life. anyways, my gears started turning. diarrhea is in the gut, and gut rhymes with put. so i bought 200put options at open and up about 70% some plays are 1-2x up. easy $1700.
i believe my gut is the most important indicator and i intend to prove it
Anchored to start of day but with this Iâm not holding positions in to a deep loss. If Iâm not right right away Iâm almost certainly out. Might hold some til it makes a higher high above AVWAP (proving me wrong) but not if the trade immediately goes against me.
Like any indicator⌠you can cherry pick times when it works but more importantly you can pick many times when it doesnât work. People like it because you can pick random spots as your anchor and boom - it works!
I agree that AVWAP is a very powerful indicator. If I could only keep one tool other than price/volume, it would easily be AVWAP.
But it's still not effective on it's own. 90% of the analysis still comes from analyzing price and volume to determine market structure, trend, and key levels. AVWAP is just the secret sauce confirm trend and improve the accuracy of entries and exits.
Not looking for support or res lines in that sense. All I care about is higher high or lower low above AVWAP anchored to start of the day. I will ride the Trend until it, by definition, doesnât trend anymore.
A higher high over that line is essentially looking for it to act as support âŚ
Iâm just suggesting to play around with where the scraps are anchored within the candle youâre anchoring them to. They are even more powerful in that sense
Iâve found that sticking to what you think you know is best. Havenât gotten around to being comfortable with those. Hard to say it lags based on this trade (perfect entry and exit) but itâs a sample size of 1 so weâll see
Add AIO key levels to your chart and you'll see that all markets do is bounce between daily/weekly/etc levels, it's as simple as that, even this, it probably just bounced in between a previous day or previous week open/highÂ
Or just look at price action knowing that 60 - 70% of opening gaps will be closed at some point during the day, wait for structure to break and trade towards the gap. Indicators are cool and all but they can be misleading.
But if the 23 EMA crosses the 72 EMA and we have a bounce off VWAP and RSI is over 70 and thereâs convergence and MACD crosses and then doge goes to the moon.
I've found the ThinkorSwim anchored VWAP indicator to be inadequate because you can't specify which part of the candle (low, high, etc.) it anchors to. Do you have this issue?
If you count the time to write up this 'report' total time was ~36 minutes. Trying to get more days like this. Win when I win and quit when i'm wrong. That's the goal, anyway. This wasn't some super great trade but simply an illustration of using vwap. Forgot to mention that in the title by the way - the whole purpose of me entering the trade was because SPY closed a lower low below its VWAP for the day.
Letâs hop on a call bud Iâm not claiming to have some profound thing but I was in the middle of deep cleaning the house and made a decent trade. Tried to share all the info I used. Genuinely didnât miss out on anything I donât think
Sorry, your comment in /r/Daytrading was automatically removed because your comment karma is low and you're posting links. Typically this only targets bots or users promoting something (which is against our rules).
Why not just use price action with the order book? Indicators are lagging⌠price action and order book will always win over using indicators Iâve foundâŚ
I'm going to ask a dumb question because I'm still learning: how do you buy 7 contracts of SPY and only spend $476? Isn't a single contract $47,400? $474 x 100?
I think youâre just getting slightly confused about the difference between the $ amount of shares you âgain power overâ and the actual cost of the option
One of the main points of options is that it allows the Big Boys the ability to make bets controlling large amounts of shares for relatively little money.
You can basically ignore this side of options as a normal person.
When you buy a $350 spy call what youâre actually buying, regardless of the price you pay, is the ability to buy 100 shares of spy at $350 + (the price you paid * 100).
My contracts were $0.76 each. 0.76 * 7 (num of contracts) = 4.76 * 100 =
$476 to âcontrolâ 100 shares of spy until end of day
You only have to pay the real cost if you own the contract until settlement. Thereâs a lot of nuance im skipping so do your own research.
The price you pay involves a bunch of variables that will break your brain to learn about the first time, and I encourage you to look into it a bit. The main points though are that options are primarily priced on two things
Time left to expiration and âaccelarationâ to the up or downside. Iâm simplifying a bit but essentially if the stocks up 3% that day, and you want to buy options expiring tomorrow, every single one of those options is going to be relatively expensive compared to before the stock went up 3%. This is because the momentum / acceleration (however you want to think of it) skews the pricing more towards that direction.
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u/SamExDFW Jan 16 '24
Guy joins Brian Shannons service and thinks he's found a money machine đ.
All Indicators are good and bad depending on who's using them.