The Warlock – Kenny Glick – here.
Everyone wants to make money in the stock market.
Bulls, bears, furries…everyone.
What if I told you I had a trade that was successful almost every time?
Would you take that trade every single day?
Would you rinse and repeat and repeat and repeat?
What if I told you that right now was the single best market environment for this type of trade?
If you want to learn more, then you have to join my Warlock’s World right now.
Because this type of trade? I’ve mastered it.
To see for yourself, make sure to tune in to my FREE DAILY PREVIEW of my Warlock’s World live trading room.
It all goes down at 9:15 a.m. ET RIGHT HERE every day.
Now, this type of trade that I’m talking about…It’s at the core of how we approach every day in Warlock’s World.
And a TON of VWAPians have been asking for me to take things back to basics.
And that’s exactly what I plan to do.
No VWAPian left behind.
But first, make sure that you’re in the room with me RIGHT HERE at 9:15 a.m. for my FREE daily preview of Warlock’s World.
Yesterday, I brought it back to VWAP basics, defining the one indicator to rule them all and why it’s so important to Warlock’s World success.
While plenty of so-called “gurus” have proprietary scanners or methodology that supposedly gives them an edge, not many can say that they have a signature trade.
I can, Blanche.
ONE MINUTE MULTIDAY VWAP REVERSAL
Maybe you’ve heard me utter the phrase “that’s a one minute multiday VWAP reversal” and you have no idea what I’m talking about.
Well today, that changes.
On my charts, I technically have TWO lines.
The blue line is the most important – that’s the 1-minute VWAP, and it’s available on most charting platforms.
The orange line is the multiday VWAP – or multiple time frame VWAP.
For the most part, I use the 1-minute VWAP to help me determine which side of a trade – long or short – to be on.
But what about when a stock breaks the 1-minute VWAP? At that point, how do I determine significant price levels?
That’s where the multiday VWAP comes into play.
I don’t know all the technical mumbo jumbo behind the multiday VWAP.
That’s right, all members of Warlock’s World receive a code to make their ThinkorSwim charts look just like mine!
The multiday VWAP is roughly an average of the prior day’s VWAP and the current day’s VWAP.
Significant price levels often become significant again.
As day traders, the VWAP levels that the stock was trading at the day before carry a HUGE significance.
This is what makes the multiday VWAP so important. And so powerful.
Take a look at this recent chart of the ProShares Ultra Short VIX Futures (UVXY)…
Thanks to 1-minute VWAP – blue line – and multiday VWAP – orange line – I see TWO trades on this stock.
When price action breaks below VWAP, it’s a signal to short the stock.
If you don’t know what shorting is or how to do it, stay tuned, I’ll cover that soon.
Once the stock’s price hits the multiday VWAP, that’s a significant price level to cover a short position.
And it’s a good thing, too, because look what happens next.
The share price rises back to the multiday and breaks above it.
That could be a reason to buy stock, with an upside target of VWAP.
It’s obviously much more nuanced than that, but that is the basics of it.
When a stock moves from the 1-minute VWAP to the multiday – from the blue line to the orange line – that’s what I call a 1-minute multiday VWAP reversal.
Ta-daa! Now you know what it is!
Be sure to stay tuned for my continuation of this VWAP basics series as I’ll be covering topics such as shorting, why earnings matter, and much more!
Of course the best place to get this kind of education EVERY DAY is by trading with me LIVE in my Warlock’s World.
Don’t miss another day trading with me.
That’s all for now, VWAPians!
Kenny “The Warlock” Glick
May 25 2022