If price above both PVWAP AND VWAP look for long.Do not play stock short if above the VWAP.Do not play stock long that is below the VWAP.Mark opening range (first high and low of the day) Step4: condition and entry type Choose weak sector Step3: MARK OPENING RANGE If respective sector negative choose weak stock for sell. Step2: relative strength and weakness compared to sector and index(refer to intraday trading course part 1) where price open, where wants to go(with respect to nearest supply and demand zone).
Professional traders who work for investment banks or hedge funds and need to trade large numbers of shares each day and cannot enter or exit the market by buying or selling a large position in stock during the day, institutional traders compare their price to VWAP values.
VWAP is often used to measure the trading performance of smart money. These tools are used mostly by short-term traders and in algorithm-based trading programs. At the end of this article, you will understand the following pointers in detail.
Please read our previous article where we discussed Multiple TimeFrame Analysis for Intraday Trading. In this article, I am going to discuss the VWAP TradingĀ in detail.