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.

In fact, my friend and Warlock’s World trainer, SOLIDJELLO programmed the code CUSTOM for me and all Warlock’s World members.

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!

Of course the best place to get this kind of education EVERY DAY is by trading with me LIVE in my Warlock’s World.

Kenny “The Warlock” Glick