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Anchoredvwap

$ES DOOM or VROOM?Stock market bears have been preaching that the stock market has been due for the DOOM correction ever since the covid recovery began. Their arguments have tantalized the analytical mind and a slew of data and indicators have supposably backed up their thesis. However, with the fed's clownish monetary policy wind in its sails, the S&P 500 has steamed full speed ahead to make new highs again and again. The astounding part about it all is not that it's made new highs (the S&P has always been a good long term investment) its that it did it in the face of insurmountable odds. The face melting +75% rally it put in off of the covid lows happened during some of the most tumultuous times this country has ever seen... with lockdowns, record unemployment, civil unrest, and a prevailing fear of this unknown virus that swept over the nation. Yes, amongst all this chaos, the S&P just went up. Then we had the most widely contested and chaotic election we have seen in a long time in this country, but still... the S&P only went up. Then we had a widespread labor shortage as people delayed going back to work after the lockdowns lifted... And inflation payed us a surprise visit and brought a new type of fear... but still the S&P went up. The virus returned with 5 new variants and vaccines turned out to be doing a whole lot of weird stuff we weren't expecting and new dreadful data was flashing across our screens, new mandates, new concerns, new narratives... but still the S&P only went up. Then the Afghanistan situation broke out, and the market dropped sharply, the world was in chaos!... but then the S&P rebounded and went back to the highs. Now I can hear you thinking... "are you saying we will never have another correction again?... never another depression?" No, in fact I believe the correction and the depression will be one of the worst we've seen when it happens, I just don't think we are there yet. The stock market has morphed into a creature of its own. Cutting the umbilical cord from what it used to be traditionally tied to. This can be clearly seen as it rallied to new highs in 2020 while the economy was in shambles. MMT and the age of stimmy checks, multi trillion dollar spending bulls and daddy Powell backing us up, have given us a Clown monetary system that has produced a clown market. And that market has been honking it's nose at the bears for a year and a half now, and I think that there are still plenty of honks to come. Many will say yes... but now the fed is going to taper and everything is going to fall apart. That's only a true assumption if you believe that the fed actually wants to change it's policy. I for one hold a different view, but we shall leave that for another time. For now, I leave you with this chart... What if the correction we saw was really just a retest of previous highs on the way to a bigger breakout move? Certainly makes the pullback look a bit different when you put on that perspective right? We have a the previous highs as support, as well as a high volume anchored vwap that marked the lows so far. I think the S&P still has some big moves ahead and maybe even a Santa rally in the cards to take us to 4700+ by end of year. May the pumps be ever in your favor -ST
CME_MINI:ES1!Long
by StonkTrump
Tesla week 8/09Tesla seems to have broken out of downward channel and has found support at anchored VWAP. Two short term trade ideas depending on next coming days price action : Bullish case : Break out of volume shelf at 722 , go long with 740 target. Bearish case : More likely IMO given MACD and OBV looking for a retest of the channel. Break below VWAP of 692 go in short with 670 first target, with 640 being the next and retest, expect a bounce here or 630 and lower comes next.
NASDAQ:TSLA
by FriscoTrades
2
$LCID Important Levels to WatchAfternoon Everyone! It is just and update on my last two posts on NASDAQ:LCID . I have intentionally excluded Moving Averages on the chart this time as we all have an idea what and where they are. Currently NASDAQ:LCID is trading below the 50 SMA. Which is a bearish spot in short term. Having said that, I think the stock has an upward potential. It might be forming a Neutral Wedge in short term. For an upward break though we need to watch the 4 AVWAP lines on the chart marked as red. This is along the thesis that I had previously. We need to deal with these lines to break out of the wedge. I hope the update helps you all next week. Have a great weekend. Thanks!
NASDAQ:LCIDLong
by Trading-Economist
2
$LCID A follow up on Lucid MotorsCongratulations to all who have been trading NASDAQ:LCID on the first day! This write up is a mid-day follow up on the idea that I posted yesterday on CCIV or LCID. So far NASDAQ:LCID has successfully broken the Anchored VWAP around $25.15 price level. In the morning session it broke above AVWAP's at $27.32 and $28.80 levels but could not stay above them. It will be crucial for LCID to break above these two levels tomorrow (or even in the Afternoon session) if we are looking into price targets such as $32.72 and above. It is also a good sign that the stock is trading above the 21 day EMA and AVWAP's from both recent high and low. Technically, all 3 of these value areas should work as support in coming days. The progressive increase in Volume in last couple of days is also an important indicator to consider. I hope this helps you all with the perspective and making good trading decisions. Thanks!
NASDAQ:LCIDLong
by Trading-Economist
14
CCIV / LCID After Merger: Bullish Hammer Above 50MA and AVWAPThe merger between NYSE:CCIV and LCID has been approved today and the stock will trade under LCID from Monday. A classic Bullish Hammer candle has formed taking support on the 50 day SMA and the AVWAP (Anchored VWAP) line anchored at the base since the merger was announced. Still the ticker is trading below AVWAP lines from the recent high, all time high and the first ever significant hike in January this year. In my humble option, LCID needs to deal with these important resistances at $25, $27.40 and 28.90 price levels if we are hoping for a significant run. So far the Bullish Hammer above the above mentioned support levels is a good start. It has also broken out of the downward trend line that it has been following since the recent high. Let's hope for the best! Also please let me know your opinion on it. Thanks!
CLong
by Trading-Economist
3
Anchored VWAP reveals future supportTaking the Anchored VWAP from lows on the chart yields some interesting results. For one, a line generated from the 2015 low, and start of the third and longest bull run, coincidentally also served as support for the 2018 and 2020 lows. Going by this idea, and systematically generating AVWAP lines from these two lows in 2018 and 2020, makes a box or zone appear under the current price. Could it serve as a support for future price? Only time will tell! But here's an important caveat: The more recently the line is generated, the higher up it goes. But perhaps used in a systematic fashion, this tool could yield interesting results.
BNC:BLX
by kebman
1
Think like a Hedge-FundImagine that you are a Hedge-Fund manager, you have a lot of money to invest. You are looking to invest in AAPL for example. Let's assume for the debate, that you as a fund manager can buy any amount of stock that is traded that day. This assumption is made because we want the Anchored VWAP to represent our position line. Anchored VWAP = is a tool that you can use that calculates the average price of volume that was traded from a certain point. In practice, since you don't have a lot of money, if you could buy 1/100M stocks each day (100M is avg volume, which means you will buy /100M), your position line will be very similar, but proportional to a private account. You decide to grow your position line when the price is after a big correction and it moved above the EMA. You go only LONG, you buy every stock that is traded (you are a Huge hedge fund manager, remember?) Path 1: You start to accumulate a position. Your position line is growing in size, but it also rises in price since you are buying stocks at a higher price. In green, you can see your position line which is also your break-even line. As you can see, the price is always above the green line, which means that you are in GREEN all the time while you are in this buying campaign. Path 2: The light blue line is where your position line will get "stuck" and will not rise if you decide to stop and not add more to your position from that point in time. Path 3: Path 3 is your position line given that you keep adding to your position even in the sideways action. You just keep buying and buying. Red line: The red line is the Anchored VWAP that will be if you want to start selling all your position. You sell every day and keep selling. This is your average selling line. Conclusion: You can see that either if you choose path 2 or 3, you will all the time be in GREEN position. If you choose to stop buying and start selling (Path 2), your average return on the position will be 32%. You entered little by little, minimum risk in the position. You have a lot of "AIR" from path 2 to where the price is currently in. This post is a continuation of the post about average-up strategy. The same line of thinking. If you like, follow and like this idea so it will be saved in your saved ideas for future reference.
NASDAQ:AAPLEducation
by ZoharCho
1