hello hello hello my dear friends this is your friend vivek bajaj co-founder of stock edge

and inland markets friends yet another to face global and yet another super excited video i'm

going to touch a very very important topic today multi-time frame analysis and with me i have the

master of multi-time frame analysis you're going to enjoy this video this learning please watch it

till the end i mean it takes an effort to reach out to the right people and get them on board for

your learning this is going to be very exciting learning we are going to discuss multi-time frame

we are going to discuss a very important indicator which the expert is using so hold on this is great

and if you have joined me for the first time face to face is a series which i run it has more than

45 million views and if you have not become part of face to face do subscribe to the channel elon

markets well without spending too much time on this let me welcome dear friend brian shanahan

hi brian hi vivek thanks for having me on here good morning from india and good evening from u.s

did i spell your name correctly uh brian sanon shannon shannon okay thank you so

much for correcting me there so it's great to connect with you and uh you know i know

uh you're very active on twitter and we got connected to twitter that's the power of twitter

you know you can reach to anyone at any uh you know within any objective and uh i know about you

so let me just introduce uh people um to you uh sorry let me just introduce you to people see i'm

already nervous but i'll try to cool keep my cool and calm uh so let me introduce a brian shannon

is an american author and technical analyst he published his book called technical analysis using

multi-time frame in 2008. he's an avid educator he's a market participant he's a trader and you

know he's the one of the best indie traders in the business that's what people call him

so you know this is a short introduction from my side but obviously we want to hear more from

you brian how did you start this journey what has been your background please tell us more about you

yeah sure i i first got my interest in the uh markets um uh through my dad he

he would watch uh wall street week here in the us which i'm not sure if you guys are familiar with

um and when i was a teen and you know 12 13 years old i would sit there on friday nights and watch

this uh market show with them and i started picking up little things about the market and

asking questions and then finally did a trade uh you know my first equities trade i think was 15

i had put up 500. my dad loaned me 4500 basically 10 to 1 margin um and we bought a thousand shares

of a five dollar stock that stock doubled in the next three months and needless to say i was hooked

on it i thought you know why do people get jobs why would anyone work when you can make money

like this especially at that age so that was uh you know i graduated college in 1991 from there

i went to uh lehman brothers in boston and uh worked as a stock broker for a little bit moved

to denver colorado uh in 91 as well 92 actually and i've been here since and you know during that

time i was a broker for a retail firm for a little while i like to say i've got the opportunity to

practice with other people's money and you know i did make mistakes with other people's money but

it wasn't you know big mistakes or anything like that but i i definitely learned a respect for risk

and you know after about a year or so of being a broker at that firm i branched out you know

basically graduated from a a salesman which a stock broker is basically uh to a trader i you

know found a firm that gave me leverage and i used uh you know every last penny that i had saved and

you know went to work for for this firm trading it was uh i think i was 23 years old and man i

if i if i had to do it again the way i did it back then today i don't think i would meaning that you

know i was young and i could afford to take risks i had nothing to lose basically um so you know i

i would i did have a strong respect for risk so i was immediately profitable and profitable each of

the months that i was with that uh proprietary trading firm out of new york i opened an office

for them in denver and then opened my own day trading office so this was you know 1993-94

and then kind of started with another firm where i headed up their pri prop

desk some educational content i still i you know i still have traded pretty much every single day

since then so you know really my passion for the market comes from my day-to-day activity in the

markets so here i am today you know as you said i wrote my book in 2008 i'm working on another one

based on you know the anchored volume weighted average price and uh i run a site called alpha

trends the best way to find my information where i put out you know my public stuff

is on uh twitter where my handle is uh alpha trend so that kind of gets us up to speed here

yeah yeah absolutely yeah so you know brian um so you said that you graduated in 1991 so how

old you are i'm 54 years old oh my goodness okay let me ask you this question do you think fitness

has anything to do with success in stock market i do yeah and i you know i i try to stay healthy

and active and uh um you know i think i think you you know you hear the phrase healthy body you know

healthy mind healthy body and you know they feed each other and you know if when you you maintain

physical fitness you sleep well your brain is rested you can engage in you know a pretty

stressful activity and where you always have to be thinking especially on the time frames that

i'm engaged on i i'm a swing trader primarily so i i ideally like to hold stocks you know a couple

days to a couple weeks but you know it's up to the market it's not up to me how long i i hold if

i decide how to long to hold it's probably going to be a loser you know in other words if i'm not

listening to the market especially now with all the volatility that we're seeing in the markets

um that you know i've got to listen to the message of the market and right now you know

today being what's the 24th of january we had an extremely volatile market in the u.s market and i

did nothing but day trades today simply because that was the opportunity there i didn't i don't

necessarily want to be a day trader but you know i i'm here in front of the machine this is what i do

and that's where the opportunity is again i have to listen to the market i don't i can't you know

tell the market what i want it's not going to listen to me true and one more question is that

if you look back your your career your life would you like to change anything there

you know i i get asked that from time to time and you know i could say well i wish i did this or i

wish i did that but you know where i am today is it it's it's based on all the mistakes i've

made it's based on all the successes i've i've had i'm really not one to look back and regret and do

uh shoulda coulda woulda type stuff i'm where i am today because i went through the school

of hard knocks now maybe i could have done things slightly differently i i honestly don't know what

those things would have been because you know i i learned by doing um my biggest mistakes have been

my best lessons yeah and without you know i could say i wish i didn't lose that much money that one

day or that one month but it's me it makes me who i am so i i really don't think about it that way

i think about here's where i am let's engage with the cumulative knowledge i have and try to be as

best as i as i can be here today sure sure um you know the last question before we go to the

conceptual discussion is that you know there are a lot of youngsters who have come into the market

and uh immediately after graduation they have just gone into the market okay

uh and you worked in some reputation firms before you actually came into the market full

time for example you worked in goldman you just mentioned do you think that experience of working

in a large firm shaped your career to to take a better decision to do on your own or let me

put it the other way do you think a youngster should not get into the market from day one

maybe work somewhere for some time get that right experience and then get into the market full time

i i think you're better off you know not getting into the market full-time right away because

you're going to be there making a lot of mistakes not learning from your mistakes rather

than getting some guidance from some structured program whether it be you know go get your cmt

uh you know for instance or go work for an investment bank under a trade

another trader try to figure out different areas in the market and maybe trading is not

the right you know route for for for someone out there maybe they're better off as an investment

banker maybe they're better off as a broker or going into mortgages or selling insurance you

don't know until you try a few things out you know and when i was starting out as a retail broker you

know my my manager at the time said you have to get your insurance license and i was like i don't

want my insurance license i'm not gonna i'm not gonna pass that i'm not doing it but i did pass it

i learned some good things and i was stubborn but you know it gave me the experience to see things

differently see things through a different lens if you can work especially if you can you know

find a way to go work for a big fund and figure out how the big money really moves but money and

markets around uh and then figure out how to you know look at different time frames and

that's the key you know it's not just what area the market can be in one of the most important

things is time frame and knowing your time frame that we can be in a bull market on one time frame

but begin the snot kicked out of us on a shorter term time frame where you're just losing money day

after day and people will say hey but we're in a bull market but your time frame is you know you're

leveraged up and you know making all the mistakes that young people make um so go you know go get a

job somewhere else look you know get a salary get some benefits learn some things swirl your money

away do some trading on the side and then progress to being a full-time trader sure that's pretty

fair advice uh so brian uh i have i'm blessed that today is the day when market was very volatile

and you actually traded from swing to day to day so you know if i can also get some input from you

that how do you trade in these kind of a market using the methodology which you will share with us

so can we just start the discussion on the concept yeah so basically the you know the markets as we

know are fractal and and for people that don't understand what that means it it basically means

if you take your analysis on a weekly chart and look at the you know the trends that they're in

you could take that same chart not know that it's you i could tell you that it's constructed of

monthly bars or candles but it might actually be constructed of one-minute bars or candles

and you honestly wouldn't know the difference a lot of the time so the the point of you know

fractal is that the patterns repeat on different time frames which is great because that's what

makes technical analysis transferable from longer term investing to swing trading to day trading

once you learn the concepts of trends how they're formed how they develop how they're sustained

where to manage risk underneath successive higher lows in the lungs or above lower highs it doesn't

matter what time frame you're on you can you know use those same principles on any time frame

and those are you know looking at multi-time frame analysis um looking at you know basic tools price

volume and again multi time frame so the three of those are the basis of the volume weighted

average price price only price pays volume tells us the intensity of the market moves and time so

today we saw the biggest volume in probably a year in the s p 500 we were down a whole bunch in the

morning we rallied back and closed right near the highs so it seems as though it's you know a

near-term turning point to measure risk against and it's always about risk management true true

so let's get it going so i guess you will share the screen and let's uh let's go through the

concept you have made a lovely presentation for us so first of all thank you for that okay we're good

yeah we are good to go okay so we're gonna focus a lot on you know the anchored volume weighted

average price and one of the biggest questions i get is where do you anchor from um and we'll get

to that but first you know before we cover any of this the the first thing you have to understand is

basic market structure and this is something that i learned from stan weinstein it's also

you know been written about by uh wyckoff and a guy named joe kerr back in the early 20s but what

it does is it breaks down the market cycle into four stages the accumulation stage is kind of

where it's been in a previous uptrend and it's broken down and gone sideways and you know there's

a phrase during these you know if they don't scare you out on the way down they'll typically

wear you out it's the process of lit ritting the sellers and the buyers regaining control

it's basically a period of neutral market you know that that i don't want to be involved in as

a trend trader instead i want to focus on for long's the stage 2 uptrend if we're in

an uptrend well then we're innocent until proven guilty meaning that you know we expect you know

that based on you know charles dow and the tenets of technical analysis one of them is

a trend once established is more likely to continue than reverse so i i don't want to

buy after the you know five day you know surge but i want to anticipate the little moves after you

know a three to four day pullback and use multiple time frames so that's what this chart is showing

here on the left is if we took this little boxed in area during this stage two and we said abcd you

know if it's pulling back on the short term time frame we don't want to get involved and actually

put an example in here with one of your indian stocks and i will forgive me i've never looked at

an indian stock in my life just because i you know i i'm us-based i trade u.s stocks but they're the

concepts even there you know i i we we can look at some live ones and they're they're going to be the

same exact concepts stage three occurs after the markup we have a chance where the market starts to

turn sideways and we certainly saw that you know first as the russell 2000 s p 500 and now we're in

a stage four decline in a lot of these markets guilty until proven innocent so what we want

to do is come up with a plan of action for each one of these stages so in the accumulation stage

one where it's kind of going sideways we're going to anticipate where to participate in a new long

or we're going to cover our short because it's no longer going down instead it's turned sideways

there's no longer an advantage to being short stage two that's where we participate on the

long side and we want to avoid shorting now we can make money shorting stocks that are in up trends

but the simple math of higher highs and higher lows means the sum of the rallies

is greater than the sum of the declines so there's naturally more opportunity to trade the long side

and avoid the little pullbacks some people like to you know short the little pullbacks and if you can

make money like that consistently that's what you should do and that you know that's one of the keys

is as i you know that you know people have to find out what is their time frame what is the market

they trade are they commodity traders u.s stock traders crypto traders solely indian stocks it

doesn't matter you've got to do what works for you don't listen to other people and say you've got to

do this or that stage 3 you know the the uptrend is kind of exhausted itself you're going to start

getting stopped out of your long trades and you're gonna start to say hey it looks like it has the

potential to break down so in the u.s market we saw all these big leaders peloton uh you know zoom

we saw roku square paypal they were all breaking down prior to the index so we were seeing you know

weakness under the surface and finally the index gave it up basically about a week and a half ago

so we want to anticipate where the other short opportunities and then in a stage four decline

that's where we participate on the short side and avoid the long side again we can make money

trading those bounces and sometimes they can be you know some of the most spectacular bounces

there are or you know spectacular short-term rallies occur in a downtrending market so if

you're nimble and you can day trade for instance like i said you know i was day trading today

we you know we did finish positive we were down most of the day so we want to you know anticipate

the moves so we're not chasing things participate when we have price confirmation exit when the

market tells us to and then avoid it so here's here's an example of uh larson and toubro yep

okay so this is i guess one of the nifty 50 stocks and you know on the left we see here's

a daily time frame it's clearly in an uptrend you this green line is the 50-day moving average

it's innocent until proven guilty with a rising 50-day moving average

there are pullbacks in here and certainly you can make money shorting those but the sum of

the rallies you know it goes from 1720 to 2000 back down to eight you know 1760. the sum of the

rallies is greater than the sum of the declines so this highlighted area here is simply this chart

on the right so we're magnifying it to 30 minute candles and i don't even know if that's the proper

uh amount of time for the indian market i don't know if those are equal if there are 30 minute

increments that are equal like here in the u.s but this is how i do my analysis it's pretty much okay

it's pretty much valid for india as well oh okay good good to know so you know in this period right

here just to this side you can see we had you know two down days and then we have this kind

of sideways it breaks a higher high here so we're anticipating you know we're avoiding this little

pullback right here we're anticipating in here and then as it breaks higher we want to participate

and as long as making higher highs and higher lows on the shorter term time frame then we

want to stay with that trend and raise our stops up underneath these successive higher lows when

it makes a lower low well then we exit that's it the definition of trend is no longer valid for the

time frame we're engaged in so there's no reason to be involved any longer so in there you can

see that exit occurred you know it didn't occur at the high only the liars exit up there right

um so we want to participate you know in here we don't want to try to buy the low we in other

words we don't want to buy pullbacks we want to buy strength after the pullback and then we want

to exit as the trend gets tired and starts to make that first lower low it's got this high it's got a

lower high than a lower low so as it breaks down yes of course you can short this and make money

but because it's in a primary stage two uptrend i look at and say i'd rather wait it out wait

for it to undergo accumulation again and have the trends aligned at this point right here

the trends are aligned the daily time frames is an uptrend in this 30 minute time frame

is an uptrend that means i have the maximum you know i have i have momentum in my favor

i ha i'm getting in at the beginning of this unfolding move i don't know how far it will go but

you know if it's truly an uptrend it's gonna at least you know take out this prior high which of

course it did and you know then manage risk and again you can make money shorting here but my

philosophy is i want to look for trend alignment and i personally avoid these because they can go

against you really strong and if you're going to short them you know i like to say do it with half

a risk unit if your normal risk unit is a thousand dollars you know when trends are aligned only risk

five hundred dollars you know based on where your stop is and that's the way you know i like to look

at you know first market structure and then start to add the tools sure brian uh this uh one day

and half an hour is it your standard template or you uh you keep on changing it depending upon the

instrument or market condition or anything yeah well on my screen so i've got several screens

of course um i've been doing this 31 years and i've you know started adding more and more stuff

my analysis remains really simple but i like to have the extra real estate so on my screen i have

a weekly chart up here then i have a daily a 65 minute 30 minute 15 minute and a two

minute so when i click on a symbol it populates all of those at once so i'm instantly aware of

you know the really big picture on the weekly time frame the daily time frame and that doesn't

really get a lot of weight in my decision for a swing trade but i still want to be aware

what are the key levels on the bigger time frames am i pressing my shorts too too far because we're

coming into this bigger level where am i you know pressing my lungs too much because we're coming

into this prior big level of support which has the potential to become resistance so it's it's my my

main time frames i guess vivek you could say would be a daily time frame is where i like to identify

what my opportunity is and then i will look at a 65 minute or 30 minute so in the us we're open for

six and a half hours a day that's 390 minutes so i want something that's equally divided into 390.

so a 65 minute time frame there are six equal candles if i used an hourly chart it would be

from 9 30 to 10 a.m eastern is would be one candle and then 10 to 11 11 to 12 so i'd have one 30

minute candle in six six sixty minute candles so the way around that is to make 65 minute candles

there's six of those that are equal or there are 13 30 minute candles 26 15 minute candles 39 10

minute candles etc so that's where i you know the the 30 minute and 65 minute i kind of look to see

what's my risk reward is there's sufficient reward potential here for my perceived risk

and then the shorter term time frames down into that five minute and two minute area

that's where i really like to fine-tune my entries look at the daily volume weighted average price

maybe yesterday's volume weighted average price and really fine-tune my entry so i can get in

just as the momentum is beginning on the shortest time frame and hopefully it will become aligned

with the bigger picture and that gives me a head start on most other people who are waiting

for breakouts waiting for volume to come in to me it's price based first i'm aware of

the volume patterns and i want to see you know volume expand on the way up peak at the turning

point diminish on the retracement and then as it starts to rally again when i'm buying

the volume isn't there yet the volume comes in an hour three you know three hours a day later

often in you know i'm i'm trading liquid stocks to begin with but i'm saying the expansion of volume

where people who've been waiting for volume i might get involved in a 30 dollar stock

and they're getting involved at 3120 because that's when they start to see the volume

by that point i'm taking a third off and saying go ahead here's your breakout there's your volume

take some from me so it's it's always about anticipating and risk management i want to

take that first third off even though i think it might be able to go to 35 38 dollars per share i'm

going to sell some at 3120 or whatever the number might be because i want to reduce my risk on the

first part maybe raise my stop to break even now i've taken all the risk out and you know that's

really the key is risk management sure so can i safely assume that uh you try to enter in the uh

towards the end of the stage one uh with the lower time frame so that you are literally the initial

ones to enter the stock yeah it's actually just at the very beginning of that stage two on the

shorter term time frame and you know i i've gone in at certain times where i've seen that level

where it's it's had resistance the last two and a half days at 31 you know 31 dollars or 30 dollars

per share so i'll go in there and it'll i'll look at my you know i'll set an alert at 29.90

i'll put it in a level two screen i'll start watching it if i start seeing a little bit

of volume or you know i i see the the offer is disappearing you know and it just seems like the

frenzy is about to build for this breakout i'll go in at 29.95 and i'll put in a uh a limit order for

for 5 000 shares at 30 and 10 cents if i see you know 1800 shares offered

i'll clear the book and create that momentum and then if i get filled on you know eighteen

hundred shares then i've got thirty two hundred shares bid at thirty dollars and ten cents

that'll induce other people to either join the bid or cut in front of me or go take the offer

so i'm trying to help nudge it at that point as well now i don't do that all the time and you

really need a a good healthy market to do that yeah and gotta you you've got to have confidence

in what you're doing and you know position of strength for the week and for the month so

you know i don't want to give the impression that i'm out there moving stocks yeah but but sometimes

i'll try to you know provide that catalyst as well sure got your point yeah please continue

okay so what we're going to mainly talk about is the volume weighted average price and this is the

scales of justice and you know the the the ladies you know the the scale i don't know what they call

her i should know this um is blind to all evidence he just seeks the truth so what we're talking

about in the market of course is supply and demand and what we're looking for is the equilibrium

points and the points where that comes out of balance and then we you know in in the volume

weighted average price allows us to objectively do that we are basically looking at this market

with blinders in terms of support and resistance and you know who has control the buyers or sellers

so number one price is the truth it's the final arbiter people argue all day long on twitter or

whatever about no you're not right about that chart or you know you drew that trendline wrong

i really don't care i'm you know i i'm not i i never debate people about a stock and

you know i've been doing it long enough i have faith in my system that i know where my stop is if

you don't agree with me go short it and i'll buy it from you don't argue with me about it i'm not

you know this is an academic exercise we're not competing for a phd degree

we're trying to make money so if you think it's that i'm wrong go take the other side of the trade

because price is truth and it settles all of those arguments and i'll know i'll get out if i'm wrong

i've been wrong a lot i'll continue to be wrong a lot but i will protect myself and get out

yeah what we're talking about are the laws of supply and demand they call them laws because they

are truths they are not the theory of supply and demand they are actual truths of supply and demand

and that's what the volume weighted average price really measures without any doubt at all it tells

you definitively from any point where we start a v web who's in control the buyers or sellers

so it's really the most objective measurement you can find and i i will challenge anyone to show

me something otherwise but it doesn't exist so we want to be aware of where is the stock in relation

to the volume weighted average price what's the direction of the volume weighted average price and

of course we're always looking at multiple time frames we don't want to fight the bigger trend

because we see a short-term you know opportunity if we do see that short-term opportunity it's

against the primary trend again smaller risk units to compensate for the fact that you're

not trading with the primary trend so the way i look at the volume weighted average price levels

people always say hey is that you know do you buy pullbacks to the 50-day moving average just just

as an example to to talk about the psychology the the 50-day moving average often acts as support

the reason it often acts as support is because we have so many people trained to look at it

who have been taught that it is support so they stop shorting as it gets down to the 50-day moving

average they might start to cover some of their you know maybe it was two standard deviations

above the 50-day moving average so some big hedge fund shorts 100 000 shares and they cover it

down at the 50-day moving average um they you know they stop selling they start buying back

and then what is sideline cash to do we've got a mutual fund with 5 million shares it ran from 30

to 35 they sold uh what i said they have 5 million shares they sold 200 000 shares on the way up

250 000 shares it pulls back to the 50-day moving average they'll stick in a bid for 50 000 shares

because they want to protect the rest of their you know four and a half million shares they have left

and stick in a bid to induce other traders to come in and say hey look at that big bid there's

buyers there so we have lack of supply we have more demand from the shorts covering from the

institution trying to protect their position and then you have sideline cash saying hey it's at

the 50-day moving average the 50-day moving average usually acts as support i'm going to

stick in a bid and lo and behold that's why we see the 58 moving average or a 61.8 retracement

or a volume weighted average price or whatever technical tool you know trend line often becomes

supporter resistance because there's enough people coming to that same conclusion in the same spot

so if we have a 50-day moving average lined up with the volume weighted average price since

the beginning of the year and a 61.8 percent retracement you know let's just say we have

all these three things coming together maybe we have the fibonacci group all coming to the same

conclusion based on hey i'm going to stop selling short i'm going to start buying back you know in

in we have they become stronger when there's a confluence of indicators so the way the way i

look at it is again we identify that key level on the bigger time frame and to me that's the daily

time frame and then we look for evidence that the buyers are actually gaining control we don't just

stick in bids blindly hoping that it's going to occur we don't have to buy 300 000 shares we're

looking to buy you know maybe 500 shares maybe 5 000 shares maybe 10 000 shares you don't have to

do the dirty work of creating the support let the institutions do that so to me it's a place to say

it's a level of interest let's look at shorter term time frames one question right so you know

bran all these standard indicators like 20 50 100 200 these are these have been used for many years

and you know what i'm seeing that uh the algos they have been mapped to these indicators

and because algos have also this character of uh fooling people so they will typically take

the price just below the 50 period moving average and reverse it from there so what i am getting a

sense after of your discussion is and please correct me if i'm wrong that only one number

may not be a perfect conclusion maybe a convergence of viva 50 period moving average and

certain more indicators and if you have a range that okay the demand zone is around 30 to 30.5

that's the range typically one should accept as a demand zone rather than one particular price

point am i right or wrong oh you're absolutely right and you know to me it's a bonus when you

see a confluence of indicators i was just trying to create the psychology of how each of those

groups might come to the same conclusion in that same area right and then what we do is we say okay

we've got this level the 50-day moving average let the other people let the uneducated people stick

it in at 30.08 right because that's the number but we have the predatory algorithms as well as what

you're talking about who are you and these are designed to go into these widely watched areas

run stops flush them out and then jack it right back higher from failed moves comes

fast moves often in the opposite direction you know those those bare traps those little shakeouts

so again they're a level of interest and what that means is you know people say hey it's at

the 50-day moving average that's support we don't know that until it runs away from the 50-day

moving average it runs from 30 50 up to 32 then we can look back and say hey look at that wasn't

that awesome the 50-day moving average was support yeah well the next time it's not going to be it's

going to go through that and it's going to drop 15 20 percent and people are going to say what

happened the 50-day moving average you know it's it's support but it didn't work the market's rate

look at it as a level of interest and what that simply means is look to the shorter term time

frames and look for evidence that the buyers are gaining control and as it comes down after a five

day decline it probably takes a day to two and a half days of trading back and forth in that

band that you said thirty dollars and thirty dollars to thirty fifty and if it comes up to

thirty forty eight one day thirty forty seven then thirty fifty two two and a half days later

that's where i want to buy i want to buy a 30-52 and maybe the low the first time was 29.95

then 20 30 and 12 cents maybe i'll stick my bit my my stop at 30 and 10 cents a couple pennies

below that most recent relevant high or low so i so in the short term i have that higher high

and i want to set my stop under the most recent relevant high or low because if i have a higher

high to me it says now the short-term time frame is looking like a budding uptrend yeah i have

my higher high what would what would break this emerging definition of uptrend well if it made a

lower low so if my most recent relevant higher low was it what did i say 30 dollars and 12 cents if

it breaks below that well then i want to get out of the stock cut my loss i can always get back in

but maybe it drops down to 28 27 26 etc sure sure go to the point yeah so it's it's multiple time

frame align you know analysis and trend alignment let me uh do this so again as i mentioned earlier

price volume and time that's the components of the volume weighted average price time is the

most subjective because we all have different time frames i'm a swing trader some people listening

might be investors some people might be scalpers which you know they're trading off 30-second

charts let's say whatever it is that's your time frame it's not a bad time frame you can't feel bad

let other people say oh you shouldn't do this or do that you do whatever works for you so what

we want to do is say who's in control the buyers or the sellers or do we have this equilibrium so

when the demand is greater than supply obviously what happens prices move higher that's a stage two

uptrend when we have sideways action it's either after a rally and it starts to turn sideways

possibly distribution that bleeds to a decline or after a decline it accumulates and then leads

to an uptrend when supply is greater than demand prices move lower to find enough demand to support

the prices so when we look at a volume weighted average price and here this is you know just one

day and these are i think one minute candles here this market gapped up this particular

day so you anchor a volume weighted average price from the very first minute of the day

market rallies up pulls back finds buyers who are defending that volume weighted average price level

has another rally stays above that v web stays above it crosses back and forth now we're kind

of in this equilibrium level it's gone sideways you know if it broke back above this 360 550

it would have been a continuation instead it broke down through this little support in the v web and

then the sellers took control we had lower highs and lower lows so for a shorter term day trader

you know there's a great opportunity here you know let's say we just shorted it right here

as this little rally or let's say even right here at 360 355 let's call it you know with our stop

just above this little lower high that's a great little day trade on these two minute candles

on a bullish time frame what we want to see a a you know here's a one minute time frame a bullish

chart will tend to find buyers at the rising volume weighted average price so if the market is

above a rising volume weighted average price for the session i don't want to short it you know some

people will try to short it up here and cover for 12 cents i'd rather look for it and say i want to

buy it as it's breaking this range here you know this tight range buy it right here with a stop

worst case under here maybe even under this little low from a very short-term standpoint and again

the fractal nature of the market says this could be weekly candles right here there's

no difference in the analysis the opposite of true of course on the on the short side

sure so why is it called anchored uh volume weighted average price what are we on here

good question so the traditional volume weighted average price the one that we hear about the v

app is for one day the volume weighted average price is you know was a benchmark for institutions

to say how well is my order executed i i run a hedge fund and i give goldman sachs in

order to buy two hundred thousand to sell two hundred thousand shares of this stock here uh

it you know closed the prior day at 177. so i want to know how well did they do for me

if if the volume weighted average price at the end of the day is 170 80 it means the average

price based on volume every single transaction you take the average price and divide it by the volume

the average price it traded at was you know the the arithmetic mean is 170.95 if

they came back to me and said hey we sold your order 166.50 or 168.50 i'd be like man

you know that's two dollars below the v web you guys what are you doing you you screwed me over

but if they you know let's say they executed the bulk of the order up in here in the morning

because they knew that it was going to be you know a lot of pressure or they anticipated

that and they came back to me and said hey we filled your order 170 85. 71.85 i'd be like

you guys are great i'm coming back and giving you business in the past though before the volume

weighted average price became a benchmark in 1988 uh it you know an institution had

no way of knowing if they were getting robbed by their broker which they probably were back then

before we had this transparency so that's why the v app was invented the anchored volume

weighted average price is when we set it from any point other than the beginning of the day

so we can anchor at the 10 15 low of the day and we can set our anchor at that 10 15 low it comes

down starts rallying up we say that looks like a high volume event at 10 15 a.m i'm

going to anchor a v web from there and see if the buyers can maintain troll from that point forward

and then it rallies up makes a high at 1 15 p.m and backs off you know a half a percent

i know that was an important high i'll anchor a v-wap to that and again i'll do that on daily

charts i'll do that on weekly charts i'll do it on you know 30 minute time frames so the

the anchoring bias is you know something that it's called a heuristic it's uh you know it's

it's that our decisions are based on you know our anchor point in our mind so for instance the price

we pay for a stock we're anchored to that that's how we determine success or failure in the market

if i pay thirty 30 and 52 cents and the stock goes to 33 i know that compared to my cost that's the

most important price what i paid if instead it's down at 29 well then i know i'm not doing a great

job so i'm anchored to that we're all anchored to a certain you know price so price has memory it

wiggles into our brain and you know gets stuck there so it's how we measure our success

the way to really think about it you know the the volume weighted average price is dollar

cost average basically it's the same thing if you took a thousand dollars each month

and invested in an apple in this case you know the stock is trading between 225

and 197 when i put this together so in the very first month you bought five five shares

at a cost of 199.23 that was your thousand dollars well the next month the stock dropped to 190

so it was down nine points so we were able to buy 5.2 shares when the stock was up at 235

we bought 4.25 shares so at the end of this what we want to say is here's our volume weighted

average price our average price was 206.60 that's our cost basis that's our v web

our volume weighted average price that's the way to think about it it makes a lot more

sense when people think about it instead of an institution buying 500 000 shares or whatever so

we're anchored to that we want to know you know some of the guidelines very similar to

a traditional time-based moving average this is a cumulative average the volume weighted average

price takes it from one point forward in in you know ads and adds up all the volume divide it

adds up all the prices times the number of shares divided by the volume so we want to be aware just

like a 50-day moving average is it rising if it's rising it means generally we give the benefit of

the doubt to the buyers if it's declining we give the benefit of doubt to the sellers if it's flat

and the prices are going back and forth above and below it a lot of people will say well that volume

weighted average price is useless brian it's just going back and forth above and below it

that's the beauty of it that that's the value right there it tells us there's no trend here

stay away from it wait for it to break the resistance by that break of the resistance

set your stop and see if a new trend emerges it's an alignment with that longer term time frame so

there's value in recognizing those neutral periods because it says stay away don't try

to force the trade when nothing's happening so is it above or below the v web what's the

direction of the volume weighted average price so what we want to know is where to anchor from

this was a period with you know back in the fourth quarter of last year for the nasdaq and

it could be any period you know any time i always anchor from the beginning of the day i from the

beginning of the week so this was a monday that monday you know prices sold off and then the

next day they got back above the volume weighted average price for the week so at that point it was

you know one day plus one 30 minute candle here so it's not a five day volume weighted average

price not it's only a five day volume weighted average price at the end of the week instead it's

the week to date volume weighted average price and you can see how the buyers defended that

and they defended it the next monday morning and then that next tuesday the sellers took control

and they maintained control on rallies up to the volume weighted average price from that monday and

into the next week they did and then we got back up above that volume weighted average price so

this looks more confusing than it actually is because i added three of them at the same time

but i'm trying to paint a picture of how they come together and perhaps i'm doing it in the wrong

order this was some something i put on uh on twitter so i put a lot of these on twitter

and then follow up with and say you know here's the volume weighted average price from the peak

amd had this really big rally that you can't see because i didn't include that here

but this was the peak and we knew that that was the peak when it broke down basically

let's say right here because we had a lower high and then a lower low at that point so once we

have that lower high and lower low we anchor a v-wap off of that peak and say let's see how it

progresses from this point forward and you can see three four days later rallied up to that volume

weighted average price from the peak sellers were there waiting and they knocked it back down and

they knocked it back down again over here but then we saw at the same time when it made this lower

low it then rallied up and broke these highs and it looked like okay this is a higher high still

below that v web but this is a higher high and that's a an important low so let's anchor a v whap

off of that so it rallies up it gets back above the volume weighted average price from the peak

it was extended on a gap so we anchor one off of that now the range is really tightening in here

and i was looking for this as a potential trade above this peak right here to buy along

if it had gotten above that level i was planning on going long with a stop under this low sure

maybe even that low because that's the most recent relevant high or low we saw that there were buyers

defending this volume weighted average price so if it got above here and then failed to continue

higher i would want to sell as it breaks back down instead what happened it broke down so you know

we didn't take so there was no trade so we anticipate during these tighty consolidations of

and we wait for price confirmation it's it's very tempting to buy in here because hey they've got

good earnings the analyst said this these guys on tv said that but until it confirms price wise that

it's made a high or high it's only a candidate for trading it's not so we want to you know

wait until we have that price confirmation this is something i like to tweet when the market's

in a downtrend i tweeted it last monday saying don't buy the dip buy strength after the dip um

but what we see is you know so here's you know for instance starbucks starbucks is in this downtrend

and basically at this point right in here maybe you know late february early march

we knew that it was making lower highs and lower lows so we anchor a v-wap off that peak and people

say hey starbucks is a good company i'm going to buy it at 75. that's in a downtrend help yourself

i want to see it back above this volume weighted average price i want to know that the average

participant from this point is now making money on the long side i want to know the average short

is losing money and that's what it's really telling us so it continues lower lower lower

all the way down to 50 bucks per share so the people bought at 75 thinking was down too much

they lost 35 you know 33 percent just a week and a half later in a so-called quality name instead you

know don't buy the dip it rallies up it makes a higher low and then it breaks that volume weighted

average price by strength after the dip that's where we want to buy that's where the buyers

the average participant long from here is making money at that point the average short is losing

money so the buyers are back in control we can buy here with a stop under whatever high or low

is appropriate for your time frame it rallies up again it pulls back to the conjunction of

the volume weighted average price from this low and this peak right in here i don't buy

there sometimes you know a lot of people want to buy it there fine you can do that i want to buy

it right here as it gets back above this volume weighted average price and that's flattened out

so you calculated sorry to interrupt me in the middle so basically what you do is for every

new swing high and swing low you have a volume weighted average price perfectly said gaps or what

period sorry whatever time frame you're engaged on okay so you know if if i'm if i'm day trading the

uh the e-mini i'm gonna do this on one minute time frames sure i'll look at that low that occurred at

10 48 a.m and i'll put a volume weighted average price off that i'll look at the high at 11 18

a.m and put a view app on that i'll see them come together in the same exact way so again you ask a

great question and it's it it it sounds confusing at times and i that's why i like to use different

time examples here i like to show an example of a one minute chart and some swing traders investors

are going well that's just crazy this is just crazy day trading stuff it's the same concepts on

a daily time frame it's the same concept over here on the right on this 30 minute time frame where we

do the same exact thing where we see you know from this peak here and this low the price converges

energy builds it makes the higher high right here and we know for a fact at that point that the

average short from here is losing money we know for a fact the average long from here factually

is making money this is supply and demand we have actual price based evidence you cannot refute

it so to take it right there rather than wait for the breakout over here a couple days later

you know people want to buy this breakout like i was talking about earlier i want to buy here

and what happens we know the volume typically will you know do something like this the volume will be

you know like this in here and then it'll start to go like that and then we'll have the biggest

volume right there and then it pulls back and then we see the volume like this people are like you

know here are saying hey look it's breaking out on big volume i want to get involved and i say

sure take a third of mine i bought it right here and then what happens to those breakout buyers ah

breakouts don't work the algos got me and you know what they probably did and i sold some to you too

thank you very much for being uneducated um so why do you say one third i'm very curious because

you have repeated this twice thrice so do you have a staggered way of booking profit as well

that's a good question i i don't really have a target on day one i will often look at

daily r2 you know traditional floor trader pivots yeah daily r2 is a place where i think i've

seen some statistics you know 80 percent of the range is 83 of the range is typically contained

within daily s2 and daily r2 right and you'll often see the daily r2 is the exact high of the

day because there are programs saying 83 of the time it trades within there let's sell a bunch of

our stock at that level and it becomes another self-fulfilling prophecy i add shares there so

i'll take a third off there i'll also often you know so that might be right here on that day

you know just a you know a two dollar gain on 120 stock even though i think hey it's in an uptrend

i expect that it should at least go to here and continue higher but then as it breaks to this high

i'll say listen where does it come from it's just come from you know 1 1 11 to 120

it's getting a little bit extended it's up you know eight percent in five days i'll sell another

third on the breakout or at least raise my stop very close in there so that if that so-called

breakout fails i'm gonna get out of third really quickly and i would probably have my other stop

right here and i would have been stopped out of the balance on that so so a third here a third

here and a third here and i might have gotten back in or i might not get back in but i'm okay taking

the meat of this move and waiting for the next one sure and you don't add your position

uh when you are in profit like with every new breakout you add more positions

i i don't add on breakouts what i might do is something you know along the lines of this is that

if on day one you know i buy right here your rallies up and let's say this is daily r2

and i sell my first third and then it comes back down like this and i have my daily view app is

right here right and the vwap off the peak is right there i might add that third back right

here and set my stop on that third and then as it rallies like this i'll either set my stop

under this high or low or something like this and and you know get stopped out right there

or i'll sell by the end of the day at least you know that third that i bought back and hold a

two-thirds position so i will day trade around my swing trade position but i'm not you know if

i buy it here and i sell there i'm not going to add here i'd never want to buy the breakout i

want to buy after the pullback no same same story once we have this compression of range and the

volume weighted average price off the peak and the low you know kind of converge that tells me

this is factually where the buyers are in control i have the most upside because it's really just

beginning that trend and i have the least amount of risk because my stop goes under this level here

so that's where i have the most bang for my buck and i can maximize my position because i have a

uh you know tighter stop relative to the guys who buy up here if they're using this low as a stop

they're gonna trade a third the size and have the same amount of risk i have three times the size

that they have and i'm taking a third of my risk off essentially reducing all the risk because now

if it comes back to break even i'll i'll get stopped out at that break even but if i took

a dollar profit on a third of it i'll still make 33 cents average on the full position

yeah yeah fair point got it okay so again buying the dip i don't want to be labor that

point over and over again you know we so as you just observed and i should have labeled

it on there is that you know from swing highs and swing lows regardless of the time frame

from earnings so you know here this company reported earnings that gapped lower

but look what happened the buyers came in after a couple days and we took control

now you know people will sell that you know say hey my target is the you know gap closure fine um

but then again they had another earnings report and another earnings report so it you know once

it gaps here we anchor another volume weighted average price and look at how well that was

defended we had a little shakeout prior to the next earnings report and then you know this was

the next earnings report so we anchor a v-app off of that and look where the buyers showed up again

so from this one you know buyers took control it didn't pull back all the way but it maintained

above that we had a new momentum event once again earnings buyers defending it over and over again

showing that this is how institutions buy they say i like that i like the earnings report

let's buy 5 million shares between now and the next quarter's earnings report and we want to buy

5 million shares so we're going to space it out and anytime it gets down to v web since that event

we're going to be in there with strong bids that's what's happening they're trying to absorb as many

shares as they can because that's their fair value since that event we're anchored here

we're not anchored to the beginning of day we chose that then we could anchor one here

and it would look like this right and we could anchor one here and it would look like this so we

want to be a buyer there if we missed it somewhere over here it would look like this and this it

would look like this and you know this time it gapped and again you know we anchor it there

buyers came in and defended it so they're great for using it as stops as well

when it tests that volume weighted average price is what i call the handoff we we then say okay it

tested that successfully then prices pushed higher so if i am a buyer here this was an important high

or low maybe i'm going to set my stops underneath this rising volume weighted average price

so it's a it's a really versatile tool to use for entries for stops for exits um

it's dynamic support and resistance it's not just horizontal support resistance

so from this low in you know january of whatever this stock is you know buyers emerged each of

these times it wasn't perfect but this is a level of interest and when we see that level of interest

we look at it on shorter term time frames for the evidence and maybe we buy it right here or

maybe we buy it right here we buy it right here with our stop under there we buy it right here

we're not buying it i'm not buying it at least right on the touch i want to buy as it says yes

that was support because we moved away from it and now if it breaks below that then i'm going to stop

out and then the v wap starts to turn sideways it breaks down it fine now instead of being support

it became resistance there so if you want to flip to the short side great but you certainly have no

business still holding it long plus it's traced out at you know head and shoulders pattern as well

this being the neckline so you've got to tie it all together for the most chance of

success and that you know comes with decades of experience where you can just see that happen

um but like any form of you know vivic of support or resistance the more times it's tested what's

you know what's happening more likely it is to fail it's not bouncing with as much vigor

as it had in the prior ones it's just kind of running out of steam here and then it closes

below it and then it starts to make a lower low that's a clear sign get out because now the the

direction of the view app also from that event that was pivotal to your entry is declining so

getting out right in here and avoiding this mess is huge it tells you that it went from

a period of buyers in control kind of neutral so stage two stage three stage four decline

and we use that as a reference point then we can draw a v-wap off of here and you know v-wap off

of here will look like this and then we can you know do the same thing over and over again we

can draw one off of uh you know off of here and it'll look like this we can draw one off of there

it'll look like that off of here look you know so over and over again is what we want to do

um uh just one question try to entropy in the middle yeah no this analysis obviously you

can't do in the entire stock universe so you will obviously select your stocks that okay this is my

number of stocks which i am going to follow and i'm going to only trade on them because i've been

following them for a long time is that your model or you scan all the stocks of u.s markets and see

which one is satisfying your pattern and then you use that stock yeah so i you know i again i've

been doing it a long time so i have my process personally is i do all my scanning manually

as i mentioned earlier you know when i when i click a symbol and then i just arrow down

on my list it populates the weekly the daily the 65 30 15 five minute and two minute time frames

i i'll jot down notes you know on a piece of paper okay and then i'll put little marks next

to them and that becomes my list for the next day and i'm not necessarily looking for longs and i'm

not looking for shorts so i don't want to go into it with a bias that says hey the market you know

turned around today i'm going to look for lungs maybe some stocks are still shorts i don't know

let's see what each stock i like to trade each stock on its own merits so aware that the fed is

report you know is is got a meeting this week and they're going to announce on wednesday so

i don't really want to and i don't have any swing trades on now i'm most likely you know

maybe i'll hold something overnight tomorrow but i'll most likely sell them before the fed event

on wednesday i have to be aware of the different market conditions we're in we're in a period of

heightened uncertainty and a lot of volatility so i need to shrink my time frame so i'm just looking

for opportunity and right now on shorter time frames so you know as all these stocks are kind of

broken at this point um and you know they're down too much too short or they've you know rallied too

much late in the day to become a low risk entry point for tomorrow i'll start looking at their

shortest time frames and you know start out as as a scalp trade and then if that you know continues

to hold the v web that i was looking at from you know tomorrow morning's 10 48 lower whatever it

might be then maybe i turn it into a two-hour trade a three-hour trade and if it continues to

do well throughout the day i'll sell pieces of it and maybe i'll hold a little piece overnight if i

you know perceive that that that's the right thing to do based on the market you know the

way it trade it you know ended the day and that sort of thing sure so well you know my question

was that when you're doing this manual scanning so yes i mean you can't scan thousand stocks right so

in manual scanning obviously you have your own stock universe right so do you follow that

that i will scan these 100 or 200 stocks and i'll only trade in those number of stocks which i have

yeah so my process is on on the weekends i look at what i call my master list of stocks

and that is a little bit over a thousand stocks and and i look at each one of those and it sounds

like a lot of work but i can do it in about if i'm really focused i can do it in about 90 minutes

um if i'm kind of screwing around looking at emails and pulling up stuff on youtube then you

know maybe it's three hours yeah but but the goal of that session on on the weekend is to get a list

for the next week and that'll typically be about 200 stocks okay now of those 200 stocks i know

i'm not going to trade probably 170 of them i might trade 30 of them over the course of the week

but i there's stocks on there i want to just keep an eye on because i know the banks have reported

i want to see how they continue to are they going to continue to decline the way they have

the way jp morgan you know had got smashed off of earnings last week and has been obliterated since

i want to have some energy names in there because energy names are strong even though

i don't trade energy names i want to look at some of the key i you know key uh uh tech names

even though i might not trade google i want to be aware of it because it's important to the market

but i'll get my list down to each so so that 200 i look at each and every day so on sunday

i look at it and say here's the 20 or so i want to really look at tomorrow but of that 20 i'm setting

alerts on maybe 14 of those stocks and on five of those stocks i consider them my a to b list ideas

the ones i really want to focus on because they're curled up really tight within a range and if they

go i know i can get bigger share size they're in a favorable group is what i'm thinking maybe

um the it's got the volume the range is tightened there's pinching between a couple of important

volume weighted average price levels they just have the look you know they're they're they held

on the rising 20-day moving average after a 61.8 percent retracement of the prior range the group

is hot um you know all those things become very small deciders in what becomes my real focus list

so again i'll set maybe 15 alerts and going back to our earlier example of the stock that

breaks above 30 and 50 cents i want to buy it above 30 50. what i'll do is i'll send if

it closed you know yes if it closes today at 30 27 i'll set an alert maybe at 30.42

so if i'm not watching it carefully it reminds me to take a look at it

it looks like nothing's happening i'll reset that alert for 30.47

10 minutes later i've kind of forgotten about it it's done nothing 3047 i look at it i put it

on the level two oh i got to pay attention here it looks ready to go in fact boom let's clear

these offers let's get this thing going because i saw that you know so i saw that applied materials

and ada adm are going amd are going and you know this little 30 dollar semiconductor if i give it

that nudge other people are going to notice and they're going to get into involved here too so

it's just kind of all those things coming together and of course you know there's there's ones that

i i want to anticipate too my analysis a lot of times look is you know i hear of these 20 stocks

i know 10 of them aren't ready today but i want to start to see how they develop during the course of

today because if they come down and touch that five-day moving average and make a higher low

and it comes down between that v-wap off the peak three four days ago and puts in a higher low then

maybe it's a good idea for tomorrow or so i just want to start to get more familiar with them so

i'm not just pulling up symbols i've never seen um you know so there's there's a pretty core stable

in that 200 and by looking at them each and every day i get a better feel for what's happening under

the market than just by looking at the s p or just looking at the nasdaq because i have energy names

i have you know uh bank names i have tech names i have gold names in there i want it and i start and

i i look down on my list and say i've got three gold names here i haven't seen three gold names in

three years what's going on with gold so you know they'll often lead the gdx so i'll look at the gdx

and say i could see how that could get going if these three stocks which appear to be the leaders

do break out and continue to move higher i could see why other people will be attracted to this

group so i feel like i get a head start by doing it manually rather than you know putting in scans

and saying here's the cookie cutter pattern i'm looking for now market fulfill my order

i want to listen to the market rather than tell the market what i want sure sure great answer

thank you okay so we've covered um as you pointed out you know from swing highs and swing lows

uh from the beginning of the day week to day month today year to date and it's

not like i'm looking at every single one of these on all stocks but if it happens to be

relevant especially now we're january 24th we've got about 18 days of trading i think

so i'm looking at basically the 18-day v-wap the year-to-date v-wap is important because that's an

important benchmark that people are measured against you you know we start our scorecard

at zero on january 1st right you your your fund managers and how they get paid in that um so

again we've covered you know week to day daily the sec the second day volume weight at average price

from earnings from gaps um and from ipos ipos are really one of the cleanest ways to look at the

volume weighted average price because we have a defined starting point for everyone it's it's the

same for everyone unless you got shares on the ipo itself the after you know the the actual trading

in the in the once the market opens everybody's on the same page we know that it opened at you know

whatever this is 45.63 so what i'll do and you can see here i have two different colored v-laps i've

got this blue one and i've got this purple one the purple one is to the very first candle of the day

okay and this is a one minute chart and what we see there is the biggest volume typically that

that's typically the biggest volume for the next couple months on a one minute candle because the

people who got it on the ipo are flipping it out maybe to the market orders so this is a negotiated

transaction here it's not real supply and demand after it begins trading so i put vwap on that

first minute but this is where the actual trading begins on the second minute so i'll put one on the

second minute as well and you can see here that that's where it pulled back precisely to it didn't

pull back to the v web from the ipo but from the second minute and then you know the next day

you see that now we're on a we're on a five minute chart so just from the five minute candle is fine

here's day one this is day two the third day look at where it opens right on that v web from the ipo

it rallies up and and again we could put a v web off of that low and it would look like this and

off of that high right there and there's your buy with your worst case stop under here or maybe even

under this little low right there that high or low and we get a phenomenal rally from 64 up to 68 and

back up to 71.72 and then we see lower highs and lower lows and this v wap will look like this

and then we'll put one off of here we can put one off of here etc and you know we want to

buy these consolidations you know breaks of consolidation um here's a couple other ipos

not really as important we're you know we're running an hour and 20 minutes here so i want to

you know keep it a little concise but you know even a year later six months later the v web from

the ipo you'll see often is defended and over and over again until we see that roll reverse where

it breaks down hard on a gap it tries to bounce there fails gets stuck under it and then test it

now the average participant the average short is defending it the average long is saying oh boy

you know it makes the lower low there if that's not as clear as

that can be signaled to get out and avoid it i don't know what else is and you can say well

sure that's traditional support and it is but here we know the actual price actual average

price factual you cannot you know you can't argue that that's not it the the actual price that is so

let's sum it up where do we anchor from breakouts and breakdowns federal reserve

so we'll see that on wednesday at 2 p.m eastern when the federal reserve announces the s p will

look like this in the morning and it'll kind of go flat line and then the fed this will be 2 o'clock

the fed will announce and it'll go like this and then it'll either go like that mm-hmm with

the v-wap underneath or it'll you know get the snot kicked out of it and stay below the v-web

anchored from that 2pm event so fda reports you know when pfizer gets a new vaccine approved

is it worth buying on that gap up because it fails and continues lower we were like hey

what happened who cares what happens they're sellers don't try to buy it don't fight it

i like to use it for short squeezes to identify where the shorts are positions what's the average

short price approximately where will they feel paying so if i can see that the short interest

went from 3 million shares to 4 million shares 8 million shares in the last uh eight weeks i can

look at the v web from the last eight weeks and say the v web from the last eight weeks was 28.75

the stock is at 30 and 45 cents and it's about to break out well those those eight eight million

five million shares that were added are definitely feeling pain because the v web from the time they

added was 28.75 so we know that they're going to feel more pain and possibly uh uh you know go

in and cover the open of the trading day that's simply the the v wap the the only difference is

and i use the term sometimes interchangeably and people say brian do you mean the anchored view app

right right i'll say the v web from the gap so the v web anchored to the day that it gapped

from an earnings report it might have caused a gap or just a regular breakaway gap because

there's you know the technical events um year to date week to date month to date any significant

event that changes the supply and demand dynamic highs lows big volume candles often are a good one

it's just the easiest quickest way to say factually who's in control the buyers or sellers

and i think that's my last slide except for this don't forget we have all these cool little

indicators and oscillators but there's only one thing that matters price only price pays

i have to include that on every presentation because i say it a thousand times a year it's

the only thing that matters don't argue with price it's the only thing that matters so

here's what i do i've got to do a two you know 30 second pitch my book is on amazon it's been

called one of the top 10 ever written look at you know my work on on twitter if you're interested in

my subscription service send me an email at this address and i'll give you a good deal and that's

that's all i have here my goodness and i'm just wondering why i haven't met you earlier because

you would have shaped my trading career quite differently i'm sure for good thank you so much

brian it was such a pleasure talking to you i'm waiting for this book and i'm really waiting for

the next one which is going to uh come very soon what's the timeline when is the next book coming

oh man you know i'm not a natural writer vivek i i've been i i started the first words of this book

probably two years ago and i wrote for about a month and then i put it down for six months

i got motivated i wrote for a little while put it down for eight months now i'm on a good i

so the short answer is i hope i have it written uh april-ish in in print by june july let's see you

know okay fingers crossed we are eagerly for it and brian you have given it all to all of us thank

you so much really really it has blown my mind it has given me so much and i'm going to start using

anchor rev from today itself because yesterday was an important day a lot of absolutely so this is a

great time to experiment this particular utility brian thank you so much uh it's it's an absolute

pleasure to interact with you great thank you for having me on thank you so much and friends uh

brian's book uh is there the link has been given to you use it because you don't get it uh think

so easily the way brian has given to us thank you brian have a good life ahead and we'll be in touch

through twitter thank you okay and people watching the indian markets uh because we have really good

volatility to play on as well you may not like to trade but it's a good market to observe i don't

want to trade all night you know you guys are just opening right now it's it's 9 30 local time 9 30

at night itself yeah yes yes yes all right thank you thank you take care please thank you okay bye

you

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VWAP strategies for profits in Stock Markets!! #Face2Face with Brian Shannon