Tuesday, January 23, 2018

Using VWAP on Trend Days

Off late i  started plotting VWAP on NF when ever i see NF making HH-HL, LH-LL 's i.e. in Trending mode.

In my observation VWAP offers good support, coupling with our DP's, specially MSP.. it lets us to enter into trade after a decent pull back happen.

I am attaching today's nifty chart for reference.
Make a note of this, this works well.



5 comments:

  1. Rose,

    It is something called "mean reversion". Prices most often reverse to their mean. You can use VWAP, moving average, Fibonacci levels or any good support/resistance level or a combination of them to enter. In this image, I used 100 SMA and Fibonacci levels.

    https://imgur.com/MrCxq8o

    Everything works. Provided we know how to use that information and when.

    URD

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    Replies
    1. Thank you URD. Apart from our regular DP's i found VWAP acting as good support during PB's. Hence added it in my tool kit. Once again thanks for visit and comment.

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