|
Today’s Best S&P Futures Turning Points: : Buy 5231.25 stop 5227.25. Short 5296.25 stop 5300.75 (filtered out during PPI release and Powell speaking due to potential volatility).
Monday’s results: Neither trade triggered in a narrow range session. The levels remain on the chart.
The World Index: (+100/-100) remains at -7 with sentiment mixed on continued low volatility.
Catalysts: PPI @ 8:30. Fed’s Cook @ 9:10 and Powell @ 10:00.
Quick Tip: Anchored VWAP
If you’re looking for a new trading approach using a technical indicator I highly recommend Brian Shannon’s book Anchored VWAP.
VWAP means Volume Weighted Average Price. The basic version of the indicator is available on many trading platforms. Essentially, it starts calculating at the open of the market and combines price, time & volume to determine the average price as the day passes. It looks like a moving average on your chart.
Brokers use VWAP to demonstrate to their big institutional clients that the orders they executed were at a fair price. Clients like that and in some cases require it. Shannon does a much better job of describing who, how, and why, this is a critical technical analysis tool. Understanding how very large orders get filled is essential regardless of your time horizon.
What Shannon’s version, “Anchored VWAP” does differently is the selection of the starting point. Rather than always using the open of the day, you can “anchor” the start to any chart feature, like a gap, a high/low pivot, earnings release or other event. For determining trend it's a solid choice.
If you want a robust version of the indicator and superb training on its usage for TradeStation, TOS, or Trading View, I’ve found it at thevwap.com.
Tired of day trading alone and guessing what to do next? Join our team. You can learn the strategies and trade live with us daily for 30 days. Money back if you’re not blown away! Take advantage of the final days of this promotional price.
Trade Fearlessly,
Mike Siewruk
P.S. Feel free to pass this along to your trading buddies. Share in the wealth!
|
