VWAP Standard Deviation as Support (VWAP Bands) VWAP (Volume Weighted Average Price) is a widely used technical indicator, and traders often use VWAP standard deviation bands as dynamic support and resistance levels. These bands are similar to Bollinger Bands but are derived from VWAP. How It Works: 1. VWAP Calculation: VWAP = \frac{\sum (Price \times...
3C Pattern 3C stands for "Cup Completion Cheat" and it is the earliest possible time you can take a position in a stock as a trader. Visually, this pattern looks like a cup-with-handle with the difference that there are two handles. The first mini-handle is referred to as the "cheat" (because it feels somewhat like "cheating" according to the author). This...
Key Elements of a VCP Understanding the key elements of a VCP is crucial for successful trading. Here are some of the key elements: Tightening from left to right within the base: You want to see multiple contractions, at least two, within the base. Relative strength and accumulation signs: Watch for these signs before this price base and within the overall...
I f a stock moves beyond its resistance level, it will often go on to make a sustained upward move. If it moves past its support level, it may be about to go on a bear run. Support and resistance levels are seen as 'stronger' if a stock hits them multiple times. In turn, stocks that break through these 'stronger' barriers are more likely to then go on extended...
A broken trendline is a technical signal that can suggest a change in trend is at hand. If low volume (rather than high volume) accompanies the break of a trendline, the signal is not as strong or convincing. It can make sense to wait a day or two to make sure that the trendline break is legitimate. Once a position is opened, risk management—in the form of...
Ichimoku cloud bounce on 1 hr 4 hr 26 ma bounce and on 1 day 9 ma bounce
Long
Neutral on long term