Blue Line to Orange Line

Hey VWAPians,

Psst! You guys wanna know a secret?

There’s a trading tool all big money uses to trade stocks. You won’t hear about it from the blowhards on CNBC or in Barron’s.

This tool uses complex software programs, otherwise known as algorithms, to determine the ideal time to buy or sell a stock. Cool, huh?

I show Warlock’s War Room members how to use this SAME TRADING TOOL every day at 9:15 a.m. ET, and I may be talking about it RIGHT NOW during my usual cameo on the 8:30 a.m. ET Money Morning LIVE hour right here.

This tool, a secret used by institutions, is called VWAP: Volume-Weighted Average Price.

Let me give you an economics lesson I learned at Brooklyn Community College: When demand exceeds supply, prices go up. When supply exceeds demand, prices go down.

Wheee! Not only am I a trading genius but a Nobel Economics Prize candidate too!

Now, this tool is VERY complex at its core — but it’s not complex to USE.

And with me as their guide, Warlock’s War Room members are going to war PREPARED and armed with BATTLE PLANS every single day.

In fact, just yesterday afternoon, my Lifetime Warlock’s War Room family and I spent the close mapping out the key after-hours levels that could come into play today for a handful of earnings movers…

Lifetime Warlock’s War Room members were prepared this morning

And I can’t WAIT to stalk even more with that crew around the close TODAY!

But even when it’s NOT the heart of earnings season, VWAP is a tool you can use yourself for ALMOST ANY STOCK on ALMOST ANY DAY!

I have shown numerous people how to trade around the BLUE LINE and the ORANGE LINE…

And today, I want to show you a trade I highlighted in the Warlock’s War Room that shows why “BLUE LINE TO ORANGE LINE” might be my next tattoo,

Blue Lines and Orange Lines

Yesterday my VWAPian students witnessed exactly why “blue line to orange line” WORKS.

Clean energy stock FuelCell (FCEL) was dissected in real time in the Warlock’s War Room, and it made for a great teaching moment

Here is yesterday’s chart of FCEL.

The shares spent the first few minutes of the regular session (pre-market action is in gray) below the 1-minute VWAP — also called the BLUE LINE.

But then look what happened when it made a break ABOVE the blue line…

FCEL 1-minute chart on Nov. 3, 2021 – courtesy of Thinkorswim

Do you see what happened next? Where the shares went?

Straight to the ORANGE LINE — also called the Multiday VWAP, which is part of a custom tool I use in TD Ameritrade’s Thinkorswim (TOS) that I shared with my Warlock’s War Room traders.

This isn’t coincidence, Blanche.

VWAP is the tool that CRUSHES people who don’t know what they’re doing. This is the secret algorithmic tool institutions use EVERY DAY… and VWAP trades are EVERYWHERE once you learn how to spot them.

We didn’t have to wait much longer to see ANOTHER VWAP break, this time to the downside.

Zillow (Z) broke the 1-minute VWAP and started dropping faster than the price of a home loaded with mold. (Yes, I know that Zillow is a website for real estate, but quite frankly I DO NOT CARE what the company does. Every symbol is just letters to me.)

Z 1-minute chart on Nov. 3, 2021 – courtesy of Thinkorswim

Also not a coincidence.

You don’t want to be long stocks breaking below the VWAP, and this is exactly why.

And if you didn’t get into a short position on the initial blue-line break yesterday, savvy VWAPians could’ve got in when Z shares were REJECTED by the 1-minute VWAP later that morning.

Z 1-minute chart on Nov. 3, 2021 – courtesy of Thinkorswim

I mean, you don’t even NEED the orange line to day-trade around VWAP, people!

In fact, my Warlock’s War Room members soon won’t even need Thinkorswim at all.

In the next few weeks, I plan to launch some awesome software my team has been developing just for us over the past few months… And my current Warlock’s War Room family will have immediate access at no extra cost.

It’s gonna be epic!

In closing, if you know what you’re doing and have the right guidance from the most magnificent trader in the world (that’s me), there’s profit potential nearly everywhere…

But ESPECIALLY during earnings season, which is why I’m excited for this afternoon’s exclusive Lifetime-only session, where we’ll draw up battle plans for tomorrow morning.

I hope to see you there.

Kenny “The Warlock” Glick

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Comments

One response to “Blue Line to Orange Line”

1. will your new program be abled to install directly on my computer or will i still need a platform like thinkor swim?
   i just subscribed to the warlock program on 7/28.
   the tos program i got with td ameritrade will not you use
   does not have a setup button on top.

   Reply