deachne 

@JonnyBoy @devdas I am attaching an anchored vwap I had coded from the original Midas. It's a bit cumbersome compared to most on the market now. One thing it has though is displacement channels. It doesn't have multiple bands, however. Perhaps Edevaay might see something in the code he feels worth putting into his product. When loaded on a chart you have to press the ctrl key and mouse over bar you want it attached to. It has a calibration button so you can have it basically anywhere on a bar or bars back/forward.

Thanks for your message. I am not clear about what you want to include in DrawCator VWAP. Basic drag-n-draw with mouse and Vwap bands are already available from very first version. Though this was early development, DrawCator VWAP has gone through huge changes from inception till date.

alexgzlz 

Hi, which book or training could you recommend about VWAP? I'm developing a strategy based on that. Thanks

Like @trendisyourfriend said, there is no book. There may be some ''training courses'' out there on VWAP but I don't know of any so I can't comment. And if there were I am not sure exactly what would be in the course.

The best training is to spend the next year or so only studying VWAP. That will be the best training you can receive. I get many DMs from people on here stating that since reading this VWAP thread, it is the only thing they have tried in trading that has made sense. It doesn't mean it is a magic bullet nor does it mean it's suitable for everybody, but it has the potential to be a starting point that you can develop into something of your own.

alexgzlz 

Hi, which book or training could you recommend about VWAP? I'm developing a strategy based on that. Thanks

I echo the other folks here regarding learning VWAP, but here are two resources that may be helpful:
Perry Kaufman's Trading Systems and Methods, 6th edition > he dedicates two pages to VWAP.

Or find the June 2001 issue of TASC magazine, article entitled "Elastic Moving Averages". This is the article Kaufman cites as his reference.

I hope this helps!

CWT episode 11 is an interview with Zach Hurwitz, who started a website thevwap.com focused on trading vwap. I haven't taken any of his training, but might be worth a look.

JayC

vmodus 

I echo the other folks here regarding learning VWAP, but here are two resources that may be helpful: Perry Kaufman's Trading Systems and Methods, 6th edition > he dedicates two pages to VWAP. Or find the June 2001 issue of TASC magazine, article entitled "Elastic Moving Averages". This is the article Kaufman cites as his reference. I hope this helps!

Thanks a lot

Thanks trendisyourfriend nice list

Thanks JayC I will check that out

Question re anchored VWAPs

I am interested in the idea of anchored VWAPS, anchored from swings mainly.
However, though it may look neat and useful on some charts..like this one from @JonnyBoy





I seek to further understand the rationale behind their alleged significance. The session VWAP rationale seems clear - we all see the same line and we know it has actual execution significance for professional traders. Is there any evidence that a swing VWAP has any execution significance..or are we just curve fitting to help us feel good about it?

My thinking is that the VWAP from a key swing area may well be institutionally significant. But this is just a mix of my logic and intuition - I have no evidence for it. But the thinking is this..if a swing area is deemed by MM's/instituions etc to be a revesal zone then from that point a different set of algorithms will be in play. Then from that point the people in the know will be benchmarking of a new VWAP...at least for a time.

thoughts?

alexgzlz 

Hi, which book or training could you recommend about VWAP? I'm developing a strategy based on that. Thanks

There are some observations and a little understanding. On one of the forums, I accidentally found an abandoned branch there, read it, maybe something will suit you

44

Regarding vwap, look up Chartmojo Neutral Unwound Cloud in Tradingview. Can ck the Chartmojo vids on youtube. You want to know where things tend to unwind to intraday..ahead of typically 10:30 (session 1) 1:15 (session 2) and ahead of 3:30 crazy time, it is to the space between the VWAP and the 50% of days developing range. Some platforms call it midpoint. So prior to those time zones look for trend unwinding...counter initial trend to neutral in the 9:50-10:10 zone then into 10:30..traders tend to put moves on at those times so other traders unwind, get neutral in front of them, ahead of them, so they do not end up on the wrong side of the move the incoming traders put on. The casual observer won't see it. Aso traders in general have a blind spot for time zone tendencies. Which can work to your advantage. The markets in range/tendency 70-80% of the time..try observing this in qqq/spy for trading in nq/es. If you have a long run intraday say 9:50-11 low of day to high of day ..the 10:30 pushers tend to like to exit 11-11:15 unless its over ridden by trend/big order flow agenda off a catalyst. Intraday price tend to push, regress to the unwound neutral cloud which is the cloud between the vwap and the 50% of the developing range. On any time frame on any big move you can anchor a vwap and find the 50% zone and after a 5 waves force (not elliot) just pure 5 wave push start to look for exhaustion, perhaps a double top or right shoulder abc return to the neutral unwound cloud. You can anchor a vwap, 50% zone and vol profile point of control on any move/leg etc. VWAP by itself is helpful but 50% of ranges trumps it and fibs but if you combine VWAP and make a cloud between it and 50% of the days (or wave, or leg) you have something w powerful "gravity". Observe it for awhile and see how many times intraday price returns/regresses/retraces to it. I would also think of ma's as incidental to vwaps and 50% of ranges. There is always going to be some ma on price on any time frame with maybe the exception of the 200 on a daily cuz a lot of traders watch that. But in general you want confluence of "signals". Price moves from confluence to confluence in waves and patterns. There are more traders/orders/entries/exits/stops there in a tier...as price enters the tier it slows as it stops and turns those out of the money market order to it and you may see a bigger candle when that happens. You can to be in front of that bar. If you watch the opening 1 min range and the Chartmojo Neutral Unwound cloud you'll begin to see traders targeting those and trading around and in front of them. But vwap when combined with 50% of developed range is a powerful regression gravity tool...throw in vol profile and developing point of control and you have a powerful combo. Ma's are good in the guppy sense or for convergence/divergence but for the most part they are incidental to what traders are targeting. If some happen at say the vwap/50% range that adds to the power of the pull/gravity..more traders. This actually works on any time frame. If you see a big move and it looks like a 5 waves on any time frame anchor a vwap and a volume profile..when it exhausts the exiting/profit taking will take the poc (point of control) to the price...when that happens its a heads up of the exiting churn..then look for the trend line break then if you have a buy sell, pivot signal...in tradingview Shawnz optimized 2 is pretty good,...look for exhaustion signs and a return urge attempt to the 50% range/anchored vwap. In strong trend off a catalyst it may violate and resolve in trend instead of tendency/range but when it does you will almost always see a reaction of a strong candle as the tendency/probability players have to exit of flip. Also note how many times price returns to the neutral cloud in a day not uncommon for say 10 times. Note relation of neutral cloud to opening 1 min range..theres your bias...then price relation to both..additional bias. But vwap/50% range cloud...will blow your mind if you watch it for awhile. It is actually traders pushing and capitalizing off of natural tendencies. Just keep in mind wave and pattern force is real and all over the place but its recognized quick due to the number of traders w high tech tools. it's recognized early and pushed then the targets stepped on or in front of to profit then they morph. The urges are there but the perfection is often tweaked. Its a bit like chess in may respects folks are pushing say a 5 wave counter initial trend off low of day to new high of day then a right shoulder (could be really tweaking looking but the urges or force is there) abc to neutral clouds etc. Its either behaving or its not. But vwap /50% of days range very powerful regression zone, same for any big move that look like a subtle 5 waves, anchor a vwap and use fib tool to find the 50%..put a band of color in that zone and see how many times and in what conditions price tends to unwind there. There are time zones to take note of. From the open on, from 10:30ish..from 1:15ish on ..and 3:30ish. Note if price is in the neutral cloud ahead of those times and you may begin to see a pattern. Is there a positioning trade to neutral in front of those times, from an extreme high of day or low of day?..must of had to much caffeine to type this much. Happy t day! This is evolving thesis, not method, or technique, open to consideration. A mental template, a filter, a way to weigh the markets movements. Do you have any stable datums on your charts like the opening 1 min range? The neutral unwound cloud? Worth a note: Knowing something does not mean you can trade it. Real Order execution is an art in itself and completely ignored. Knowing a lot about golf does not really help you if you are going to play Tiger Woods. The market has its share of Grand Masters. One should think of order execution skill like skill w a racquet if you are say a tennis pro. How many swings before one becomes a pro...how many practice swings after becoming a pro? Your up against folks w pro gamer mouse skills trading off doms with all kinds of fast tools .Learn long, then observe until you see something clearly, then practice it over and over until its optimized. Practice long till it is innate and if x occurs you do x1 if y occurs you do y1..its the only way around the cognitive dissonances. Be the algo. That comes from seeing the market, and then knowing how to trade it. Keep in mind traders see different things, and continue to see things as they progress. Each opinion is a snapshot in time. Some things work some of the time. You can have an edge yet the win/low distribution within the edge can have a randomness to it. Signals and sets ups move thru time frames as they are recognized, played and morph. Find the time frame where you see the best signals. Like card counting blackjack player you go in heavier when the count is in your favor. Stick to the best high probability sets ups in the best highest probability time zones. Good things to get on a gut level. Talking trading, not investing. If there is something in there helpful..great. Do what price does. Usher coaching singers..."if your in your head (when you are performing) you are dead". How often do we label something then operate off the label rather than how price is behaving in the moment. Do you ever lock up and sit there when long and its dropping like a rock, hoping. Can do what price does or be the voice in your head. That voice is ego and it just loves to be right and it will sacrifice your account to try and be "right". Thus 1200 cognitive bias's. It also likes to make everybody and everything else wrong...to long a subject for here. Stay frosty! Try avoiding labels like bull, bear...instead try imagining different scenarios and taking the one that confirms. I'm amazed when people learn like 1 thing and start trading w real $. It's a bit like learning one chess opening and entering a tournament.