Video Title: Number One VWAP Day Trading Strategy (Works On All Markets)
Channel: The Secret Mindset
Speakers: (Speaker name not provided in transcript)
Duration: 00:16:22
Introduction
This video presents a day trading strategy using VWAP (Volume Weighted Average Price) and V-top/V-bottom price patterns. The strategy aims to increase the probability of successful trades by identifying high-probability entry points.
Key Takeaways
V-bottom Pattern: A bullish reversal pattern identified by a price drop followed by a sharp increase in buying pressure. The strategy suggests waiting for a price break above the neckline (previous swing high) and then entering a long position on a retest of the neckline.
V-top Pattern: A bearish reversal pattern characterized by a price increase followed by a significant drop in selling pressure. The strategy recommends waiting for a break below the neckline (previous swing low) and entering a short position on a retest of the neckline.
VWAP as a Filter: The video uses Anchored VWAP to filter V-top/V-bottom signals. Anchored VWAP, applied to the lowest low of a V-bottom or highest high of a V-top, creates dynamic support/resistance levels.
Confluence Trading: The video advocates for confluence trading, combining VWAP with additional indicators such as central pivot points and trendlines to confirm trading signals and reduce false signals.
Risk Management: The video emphasizes risk management techniques, including setting stop losses below/above the VWAP and adjusting stop losses to breakeven once a certain profit target is reached. A minimum risk-reward ratio of 2:1 is recommended.
