VWAP: The Big Players' Average Balance
45sExplains the core concept of VWAP in a simple, relatable way, appealing to traders seeking an edge.
▶ Play ClipAI Summary
This video explains how to use the Volume Weighted Average Price (VWAP) indicator to improve day trading results, specifically for the mini index (mini-índice). The presenter demonstrates how to add VWAP to a chart, customize its appearance, and interpret it as the average balance of large players, while warning against common mistakes like chasing price against VWAP.
Chapters
[00:02]
Adding VWAP to Chart
To add VWAP, select the chart, type 'VAP' (or VWAP), and double-click. Customize appearance by clicking settings; set thickness to 2 and color to light blue for better visibility.
[00:17]
VWAP as Market Balance
The market tends to consolidate around VWAP because it represents the average balance of large players during the day. It acts as a key level for price action.
[00:32]
Reading Player Balances
Use VWAP to see the biggest sell and buy levels of the day. In the example, the biggest sell is at 658 and the biggest buy at 671, with VWAP between them.
[00:44]
Warning: Avoid Chasing Price
Be careful with VWAP reversals. Often a buyer pushes price up, and traders end up hitting sell orders while chasing the top, which fails. Avoid chasing price against VWAP.
VWAP is a powerful tool for day traders to identify key levels and avoid poor entries. Use it as a reference for market balance, but avoid chasing price against it to improve results.
Tutorial Checklist
3
00:32
Identify the biggest sell and buy levels of the day using VWAP (e.g., sell at 658, buy at 671).
Study Flashcards (3)
How do you add VWAP to a chart?
easy
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How do you add VWAP to a chart?
easy
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Select the chart, type 'VAP' (VWAP), and double-click.
00:02
What does VWAP represent?
easy
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What does VWAP represent?
easy
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The average balance of large players during the day.
00:17
What is the warning about VWAP reversals?
medium
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What is the warning about VWAP reversals?
medium
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Avoid chasing price against VWAP; often a buyer pushes price up, and traders hit sell orders while chasing the top, which fails.
00:44
💡 Key Takeaways
⚖️
VWAP as Market Balance
Explains the core concept that VWAP is the average balance of large players, making it a key level for price action.
00:17
🔧
Avoid Chasing Price
Provides a practical warning that helps traders avoid common mistakes, improving their trading discipline.
00:44Full Transcript
[00:02] VAP works, which is the average balance of the big players of the day. To put VAP on your chart, just select the chart, type VAP vwap, double- click. And then you can change its appearance by clicking here. I'll set it to
[00:17] thickness two and light blue to make it easier to see. The market likes to stay consolidated at this level all the time, after all, it's the average balance of the big players of the day. You can also look at the players' balances in the times and
[00:32] trades evolution over time. I prefer to use it here; in fact, here it's at 658, the biggest sell of the day, and at 671, the biggest buy of the day. So the average is here, that's the VAP.
[00:44] See? And guys, be very careful with this VAP return thing. Many times there's a buyer taking everything upwards, and you end up hitting sell orders chasing the top, and it doesn't work. Okay? If I helped you in any way, don't forget
[00:58] helped you in any way, don't forget to leave a like.
