Part II: Scalping using VWAP. Using Pivot Points & RSI for high probabilities setup.

Learn everything about the #niftyfuture #nifty . #SpeakingTechnically is a Knowledge Show on the ProRSI YouTube Channel. Speaking Technically we aim to break the myths of Trading using Technical analysis and Training in the financial markets and provide true Knowledge to people which Trading Gurus have been hiding till now. Started By Bharat Jhunjhunwala. He is an International Certified Technical Analyst and a successful trader. He has trained more than 5000 people all over the world. He has written many articles/blogs over a period of time which has been appreciated for its content and TRUTH. Bharat is a CMT, CFTe, and MSTA. He has been awarded MFTA from the prestigious IFTA (USA), for his works on RSI. He has been closely involved in trading stock and commodities since 2006.
** Facebook : https://www.facebook.com/bharat.jhunj...
** Twitter: https://twitter.com/BharatJ82
** LinkedIn: https://www.linkedin.com/in/bharatmft...
** Website: https://www.prorsi.com
** Email: infoatprorsi@gmail.com
BACKGROUND MUSIC:
Modern Business and Uplifting Corporate
Music License
Purchase code: b11647e9-7234-4a06-9c8d-8509cfb89a69
Corporate and Business Innovation
Music License
Purchase code: 5ae3ca50-4b86-44e0-b2d0-01134d3b0abd
Uplifting Inspirational and Upbeat Motivational Corporate
Music License
Purchase code: 3e8c73dc-2de1-463e-b4da-d276fbd9ec5d

The VWAP is a trading indicator, which averages the closing prices during the given time period. At the same time, it puts emphasize on the periods with higher volume. In this manner, the Volume Weighted Average Price is a lagging indicator, because it is based on previous data. The image below will show you how the VWAP looks on a chart. Yes, it is a single curved line on the chart. Therefore people often confuse it with a Moving Average. However, you have probably noticed something. See that the further the indicator goes, the smoother it is and it reacts less to price moves. The reason for this is that it gives the average price value during the trading day. The later in the day we are, the more periods the indicator has averaged and the bigger pressure it would need in order to do a move.

Volume Weighted Average Price Signals
The signals from the VWAP could be confusing at some point. The reason for this is that the same signal from the indicator could be interpreted in two different ways.

VWAP Breakout
When the price goes above the VWAP indicator this means that the strength of the bullish move is strong. It is so strong that the price has managed to break its average value on the chart. Therefore, we get a long signal. The same is in force for a bearish breakout, but in the opposite direction.
The trading day starts with the usual VWAP dynamics due to the initial short amount of periods. Later in the day the indicator is already smooth, but still inclined downwards. This means the trend is very strong.

Support and Resistance with the VWAP
The Volume Weighted Average Price line could be used as a support or resistance for the price action. Since the indicator averages the total periods for the day, it has psychological meaning on the chart. If the price approaches the VWAP line from below and starts hesitating in the area, then the VWAP may be considered resistance. If this happens in the opposite direction, then the indicator might be able to support the price, creating a bullish bounce.
Price Way above the VWAP Line
If the price increases a lot after a bullish breakout through the VWAP, this could have a different meaning. If the price goes way above the VWAP – yes it means that the bullish trend is very strong. However, if this happens for a short period of time, it also means that the price is way above its average value and it might be time for a decrease. The same is in force for bearish breakouts but in the opposite direction. This acts the same way as the overbought/oversold signals from the oscillators.Just remember: Buying way below the VWAP may be considered a good deal since the price is way below the daily average (make sure to understand the cause of the move). Selling way above the VWAP is also considered a good deal, since the price is way above its daily average.

Trading with the Volume Weighted Average Price
The VWAP is a good tool for measuring relative strength, however like many market signals, you may want to combine it other technical indicators for confirmation.

In this manner, we will now demonstrate you a VWAP trading strategy which works. We will combine the indicator with another lagging indicator – the Moving Average Convergence Divergence (MACD). We will enter trades only based on matching signals from both indicators. We will close our trades when the MACD creates a crossover in the opposite direction.
VWAP is a great technical indicator because it accounts for both price AND volume. Unlike moving averages,

Видео Part II: Scalping using VWAP. Using Pivot Points & RSI for high probabilities setup. канала Bharat Jhunjhunwala