So I took this trade today using vwap.
Price was initially above vwap and then it broke below the vwap when it got bearish. Price then retested the vwap level and that's where I entered. Took the trade and almost got banged by the SL, price reached 155.48 and my stop was at 155.50.
FLAIR WRITING INDUSTRIES is forming a very large inverted head and shoulders pattern on weekly time frame. Price is taking resistance of the neckline, and IPO day avwap. On the daily chart, there is a very large saucer kind of formation.
Just wondering how would you plan a trade on this setup?
Option A: Anticipate the breakout? Buy early inside the saucer.
Option B: Chase breakout? FOMO enter on Day 2 at the exact absolute peak of the pump
Option C: Wait for the retest? Wait patiently for a few days, only for the stock to gap up 40% without me and never look back.
Option D: None of the above. All of these are stupid ways. I will explain the smart money method in comments.
Pretty good stuff - it works really well!
So I watched a few videos online about ICT (not from ICT himself, as he talks more and teaches less, IMO) and I learned a few basic things like FVG, OB, BB, and BOS. Then, I tried implementing them.
And yes, context matters. For example, where you identify an FVG, OB, BB, or BOS is key; you cannot just place these anywhere on the chart. However, I don't know, lol. I literally only watched a BB video, found a chart quickly, drew in the lines, and it hit! Maybe I was lucky LOL.
But yeah, I want to learn more. Any tips? Or is it possible to only trade FVG, OB, BB, and BOS?
So what is an avwap pinch breakout?
When price gets trapped between two avwaps, one from high and one from low, and then price breaks either above or below, that usually gives a huge move in a short period.
Here's another example with stop loss placement.
It almost took the stop loss.
Here is a 30 min chart.
Here is a breakout of lower avwap.
Head and shoulder pattern, which has kind of failed or unable to break through the neckline.
Higher low confirms the change in trend.
Price is exactly taking support of 200d SMA.
This looks cool to me.
Sambhv Steel Tubes limited broke out of its IPO AVWAP and all time high AVWAP
trend is already higher high and higher low, let's have a look at 1h chart for entry
I've drawn another avwap from high volume candle, and the price is currently trading at point of interest. There's 50% chance of reversal and 50% of breaking down through the AVWAP. We might enter here with tight stop loss, or we can also wait for "Strength after Dip" for higher probability of winning but slightly worse buying rate.
Some more examples of IPO avwap breakouts:
DEE DEVELOPMENT ENGINEERS
EMCURE PHARMA, price broke IPO avwap and then retested it
CEIGALL INDIA
PN GADGIL JEWELLERS broke out this week
This is not a financial advice. I’m one red candle away from deleting this account.
Sambhv Steel Tubes limited broke out of its IPO AVWAP and all time high AVWAP
trend is already higher high and higher low, we might see a new ATH soon.
Now lets have a look at 1h chart for entry
I've drawn another avwap from high volume candle, and the price is currently trading at point of interest. There's 50% chance of reversal and 50% of breaking down through the AVWAP. We might enter here with tight stop loss, or we can also wait for "Strength after Dip" for higher probability of winning but slightly worse buying rate.
Some more examples of IPO avwap breakouts:
DEE DEVELOPMENT ENGINEERS
EMCURE PHARMA, price broke IPO avwap and then retested it
CEIGALL INDIA
PN GADGIL JEWELLERS broke out this week
Anchoring VWAP on IPO day is the least subjective method (and the best). Price respects the VWAP line as support/resistance, even after a terrible downtrend. I’ve plotted three AVWAPs: 1) first week high, 2) first week low, and 3) first week OHLC average.
Travel food services is showing signs of strength with higher highs and higher lows. Price has broken avwap from a significant swing high and is now forming as a support.
50 period simple moving average is also forming support at the exact same point.
If the 1233 level holds, it should be rising again.
