Stop Trading Blind: How to Setup Anchored VWAP 🎯⚙️
Why It Matters
Anchored VWAP gives traders a systematic, data‑driven framework to capture short‑term reversals, turning volatile bull markets into actionable opportunities and improving risk management.
Key Takeaways
- •Use anchored VWAP to pinpoint short entry points in bullish markets
- •Anchor today’s VWAP to prior day’s VWAP for clear risk levels
- •Profit targets often near prior‑day VWAP, limiting downside to two points
- •Algorithmic markets cause rapid retracements to anchored VWAP levels
- •Mastering VWAP is essential; without it, day‑trading fails
Summary
The video walks viewers through setting up an anchored VWAP indicator and demonstrates how it can reveal short‑selling opportunities even in a relentless bull market.
Glick anchors today’s VWAP to the prior‑day VWAP, using the gap between the two lines to define entry, stop‑loss and profit zones. He stresses that the algorithmic market often forces price to retrace to the anchored level, making the distance a reliable risk‑reward metric.
He illustrates the method with a Hewlett‑Packard short that moved from $62 to the penny after hitting the prior‑day VWAP, and a Dollar General trade where a one‑minute multi‑day VWAP reversal produced a clean exit. He calls the decisive move the “finger of God.”
By treating VWAP as the primary reference, traders can limit exposure to a few points while targeting larger moves, a crucial edge as traditional shorting becomes riskier in today’s upward‑biased environment.
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