“To summarize my trading strategy for VWAP Moving Average Trend trading: When I am monitoring a Stock in Play and notice a trend is establishing around a moving average (usually 9 EMA) in the Late-Morning session, I consider VWAP Moving Average Trend trading. If the stock has already lost the VWAP (from a VWAP False Breakout), it most likely will stay below the VWAP. Similarly, if the stock squeezed above the VWAP in the Late-Morning session, it is most likely that it will stay above the VWAP, as it means the buyers are in control. Once I learn that either 9 or 20 EMA are acting as either a support or resistance, I buy the stock after confirmation of moving averages as a support, but only if I can clearly see it “held” the VWAP. Similarly, I go short below the moving averages if I have the confirmation that it has “lost” the VWAP in the Late-Morning session. I buy or sell short as close as possible to the moving average line (in order to have a small stop). My stop will usually be 5 to 10 cents below the moving average line or, if a candlestick, close below the moving average (for long positions). For short positions, a close above the moving average would stop me out. I ride the trend until the break of 9 or 20 EMA. Usually, 20 EMA is a stronger support or resistance, so it is better to wait for that. I usually do not use trailing stops and I constantly monitor the trend with my eyes, but I know that many traders also use trailing stops. If the stock is moving really high away from the moving average, offering me an equally really nice unrealized profit, I may take some profit, usually at the 1/4 or half-position. I do not always wait until the break of moving average for my exit. Traders will say: you can never go broke by taking good profits. If the price pulls back to the moving average, I may add again to my position and continue the VWAP Moving Average Trend trade. Remember, when you take profit, you should always bring your stop loss to break-even. Never go red on a stock that you already booked some profit on.”
―
Day Trading for a Living
Share this quote:
Friends Who Liked This Quote
To see what your friends thought of this quote, please sign up!
2 likes
All Members Who Liked This Quote
This Quote Is From
Browse By Tag
- love (101108)
- life (79077)
- inspirational (75635)
- humor (44247)
- philosophy (30834)
- inspirational-quotes (28752)
- god (26828)
- truth (24669)
- wisdom (24497)
- romance (24294)
- poetry (23148)
- life-lessons (22526)
- quotes (20920)
- death (20503)
- travel (19123)
- happiness (18917)
- hope (18497)
- faith (18338)
- inspiration (17244)
- spirituality (15643)
- relationships (15449)
- religion (15360)
- motivational (15254)
- life-quotes (15243)
- love-quotes (15071)
- writing (14914)
- success (14155)
- motivation (13100)
- time (12823)
- science (12051)