📈 VWAP Trading Strategy

Use this trick to find key levels.

Trading with Anchored VWAP

Anchored VWAP is a tool that I use often and it is working well in the current trading environment we are in.

When we see market pullbacks (like we did about a month ago), you can use anchored VWAP on the peaks of the moves before the pullback to understand where the average investor is in on the stock and where they may be buying/selling.

Above is an example of TSLA from a few weeks ago that shows how to use it. You can see that I dropped an Anchored VWAP at the peak of TSLA’s chart. The white line tells you on average where investors are in the stock at from that day forward.

You can see that we finally rallied back up to Anchored VWAP and immediately rejected it.

Clearly this indicator is significant because essentially what we saw happen was once investors broke even on their trade, they liquidated, causing the stock to drop.

Anchored VWAP is a great trading tool to use on peaks and how the stock acts at Anchored VWAP can give you a great indication of what is to come.