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Here is a setup on SPY that I like intraday for VWAP. Here is a M5 chart that I am trading. The white line is VWAP. Green is 12 EMA, yellow is 22 EMA and red is 55 EMA. Horizontal green is last trading days high.
I am trading mean reversion to VWAP intraday.
I am trading mean reversion to VWAP intraday.
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(Edited)
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VWAP and AVWAP
I will sometimes counter trade intraday on the M5 if the price gets extended on the VWAP and we are not having a heavy trend day. I avoid VWAP on heavy trend days.
I like AVWAP better for higher time frames. I like to use two anchors on important macro days where trends have changed. I use this to see when the majority of people are in the red or black. For instance, AVWAP on the tariff tantrum lows or AVWAP on the start of the recent war have been personally helpful in market reads.
However, it is very easy to VWAP all over oneself by using too many AVWAPs. Much like trend lines, we can draw a trend line to almost show anything.
I will sometimes counter trade intraday on the M5 if the price gets extended on the VWAP and we are not having a heavy trend day. I avoid VWAP on heavy trend days.
I like AVWAP better for higher time frames. I like to use two anchors on important macro days where trends have changed. I use this to see when the majority of people are in the red or black. For instance, AVWAP on the tariff tantrum lows or AVWAP on the start of the recent war have been personally helpful in market reads.
However, it is very easy to VWAP all over oneself by using too many AVWAPs. Much like trend lines, we can draw a trend line to almost show anything.
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I use the volume profile for two reads.
(1) I like to look at single prints and for setups where price may blow thru the prints to the upside or downside.
(2) I like to track the unfilled gaps of the single prints. When the single prints are not retraced a number of times, I look to counter trend trade. I begin looking at 5 and become more and more interested in a trade as this number gets higher.
As in all things, I do not use a single signal. I do prefer to use a confluence of signals.
(1) I like to look at single prints and for setups where price may blow thru the prints to the upside or downside.
(2) I like to track the unfilled gaps of the single prints. When the single prints are not retraced a number of times, I look to counter trend trade. I begin looking at 5 and become more and more interested in a trade as this number gets higher.
As in all things, I do not use a single signal. I do prefer to use a confluence of signals.
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