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Ebook VWAP 101

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134 views4 pages

Ebook VWAP 101

Uploaded by

a_a_talati
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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EDUCATION SERIES YOUR VWAP DASHBOARD 101

KENNY GLICK
CHIEF VWAP OFFICER

moneymorninglive.com
WELCOME TO

THE WARLOCK’S WORLD


Hi, welcome to your resource for all things VWAP. We put together a comprehensive
resource that can get you trading like me, following the tried and true Volume Weighted
Average Price method that applies to all trades. Follow along with our introduction to
VWAP and my helpful videos to identify how to make VWAP work for your trades. Let’s
get started.

What is VWAP?
What is
VWAP? VWAP stands for Volume-Weighted Average Price.

The blue line on my charts is the 1-minute VWAP, and it’s THE ONLY LINE THAT MATTERS
IN THE STOCK MARKET.

Why is VWAP important?

The entire stock market revolves around algorithms now – the days of sending trade
alerts to your broker via smoke signal are over, Blanche.

The blue line – 1-minute VWAP – is telling you where institutional money is going into the
market. When a stock makes a definitive move back above the 1-minute VWAP, that tells
us that the REAL power players in the market (and that ain’t me – I’m an insignificant bug
on the back of this beast) are putting money in, and that’s what gives us the volume.
When a stock makes a move back below the 1-minute VWAP, it tells us power players are
hitting the exit.

How do I trade VWAP?

Now that we’ve established the importance of VWAP, if I say, “This stock is breaking
back over the VWAP” during one of my LIVE 9:30 a.m. ET sessions, you’re gonna think,
“Institutional money is getting into this stock – maybe I should buy it.”

On the other hand, stocks making decisive moves back BELOW the 1-minute VWAP often
present opportunities on the bearish side – I might play this pattern by either shorting the
shares outright or buying soon-to-expire put options.

Of course, VWAP trading is more nuanced than that, but that’s the gist of it. To best
educate yourself on the ins and outs, it’s important to be in the room watching me each
morning.

moneymorninglive.com
Whether long or short, though, make sure you’re not in the position too long and never
What is overnight!
VWAP?
I’m a day trader who makes fast moves based on the 1-minute VWAP – I’m not an investor
looking for long-term gains here, and I’d rather DIE than be a bag-holder.
I like to get in and out of trades quickly, and set stops and targets along the way, so I
never exit my position at one price.

How do I know which stocks to trade?

In order to best trade VWAP, you need stocks that are liquid and moving – not some
slow-burning tortoise stock, so I’m often hunting earnings reversals or stocks with major
momentum that day.

I suggest picking 10 stocks that are moving each morning, and then whittle that watchlist
down to 4-5.

In fact, each morning I’m doing most of the heavy lifting FOR YOU, giving you my daily
Warlock Watchlist – found at the top of ThisIsVWAP.com each morning (and get a sneak
peek at 8:30 a.m. ET when I’m on the Money Morning LIVE show).

You want to keep your watchlist on the smaller side, because day trading is a fast sport,
and watching too many stocks means you could miss a big move or VWAP break.

Then, once a stock lands on my daily Warlock Watchlist, I usually watch it for 2-3 more
days, because sometimes I can squeeze even more out of it, depending on volume.

Helpful Videos to Watch and Articles to Break it all Down


Trade
Examples Watch me show how to define your levels on a trade:

moneymorninglive.com
What does “short selling” mean?
Trade
Examples

How to build your watchlist like a Warlock:


Helpful Article: Build Your Watchlist Like a Warlock
Articles
How I trade options:
Article: Playing Calls Around the Biggest Earnings of the Season

The “Finger of God” and “Checkmark of the Lord” patterns:


Article: 2 Holy VWAP Patterns for Earnings Seasons

The 1-minute multiday VWAP reversal and “Kardashian Bottom” pattern:


Article: 3 Classic VWAP Signals on 1 Earnings Report

Never exit your entire position at one price:


Article: How I Exit VWAP Trades

Better to be late and right than early and wrong:


Article: A VWAP Lesson from CPOP’s Popeye Moment

How I draw my red lines:


Article: How I Draw My Red Lines

Is it an earnings report? Did it break VWAP?


Article: Two Statements That I Trade By

moneymorninglive.com

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