The ONLY 2 Indicators I use to make $4351/Day Trading

About this video

• Video Title: The ONLY 2 Indicators I use to make $4351/Day Trading
• Channel: PBInvesting
• Speakers: Not specified in transcript
• Duration: 11:18

Overview

This video explains a trading strategy using two indicators: Volume Weighted Average Price (VWAP) and Exponential Moving Average (EMA). The presenter details how to set up these indicators on a TradingView chart and outlines the rules for using them to identify trading opportunities, manage trades, and potentially increase profitability. The video also includes live trade examples and emphasizes the importance of discipline and patience in trading.

Key takeaways

• Essential Indicators: The strategy relies on two primary indicators: VWAP and an 8-period EMA.
• VWAP Rules:
  • Never take calls if the price is below VWAP.
  • Never take puts if the price is above VWAP.
  • VWAP serves as a significant retest area.
  • Trades are taken on VWAP retests, not solely on pre-market low retests if VWAP is involved.
• EMA Rules:
  • The EMA (specifically an 8-period EMA is demonstrated) is used to determine when to exit a trade, acting as a trailing stop-loss.
  • As long as the stock price stays above the EMA on a 5-minute chart, the position can be held.
  • EMA retests can also be traded, though they are often considered shorter-term scalps.
• Strategy Application: The combination of VWAP and EMA helps identify strong entry points (e.g., retesting pre-market highs/lows while aligning with VWAP) and helps manage trades by signaling when to exit to capture profits or cut losses.
• Importance of Discipline: The video stresses that success in trading hinges not only on strategy but also on discipline, patience, and mental fortitude.