Trading with Market Statistics III. Basics of VWAP Trading

[jperl 11]

Thank you, Jerry for a valuable discussion and all your effort.:applaud:

 

I don't have ensign, but TOS (Think or swim) has VWAP and Volume Profile indicators. Should these be started at 9:30 AM each day, or are they running continuously?

I believe in TOS, you can only start VWAP from the opening bell, daily, weekly or monthly.

 

 

Regarding ensign - are these indicators proprietary or standard?

What you see in my charts is based on software I wrote. However Ensign offers them as part of their study list.

 

And last - is 2 minute chart the optimum for trading this method?

I use 2 minute charts, but there is nothing sacred about the time interval, you can use longer or shorter intervals

[momentom 10]

Jerry, how do you handle the period when the VWAP is switching between above and below the PVP? Do you stand aside or anticipate what you believe will happen? Thanks!

[jperl 11]

Jerry, how do you handle the period when the VWAP is switching between above and below the PVP? Do you stand aside or anticipate what you believe will happen? Thanks!

 

I would stand aside and wait until the switch occurs. Then decide what to do about a trade.