Vwap Trading Strategy – Hello friends! Welcome back to my blog. The next post will be in English. As you all know that I have made many posts previously on intraday in which I have discussed many strategies, however, I have tried to keep it as simple as possible for you to understand. We sometimes complicate things in life which is actually unnecessary. We think that trading is rocket science or something big to earn money. Undue emphasis is given to strategies on which most of the traders get hit on.
Let me tell you guys that only 30% or at the most 35% of trading depends on strategy, the rest of it mainly depends and rotates on money management, risk management, and capital preservation. As you guys mainly emphasize… One second… I am trying to track NIFTY bank for the past two days so it’s necessary for me to check it. Actually I have been working on a strategy for this. Many people are asking me to do one in indexes. Frankly speaking, you cannot achieve mastery in everything. You can be more than average but cannot master everything. I have not mastered Bank NIFTY and indices, but for you guys, I would love to get some strategies.
But until I cannot prove it and don’t test it first I would not put it forward to you guys. Just because you earned money one day by trading doesn’t mean that you will show it to everyone. Let me make it clear to you guys about two- three things, I also make a loss in the main account. But at the end of the month I like to stay net profitable and I stay profitable as well. As I always say that 30-40% depends on strategy and rest depends on management which you need to focus on. As you always ask me about different strategies. Today what I am going to tell is a very simple thing. If you take any strategies from my blog I guarantee that if you do the exact entry, and exit you are sure to profit. So without further delay let’s start today’s post.
So today we are focusing on 3 trades- Bharat Finance, Indigo, and Adani ports. Im going to tell you about all the entries and exits also. Starting with Bharat Finance – we use a time frame of 5 minutes and candles can be found on display. I’m choosing a volume candle to keep simple and it’s easier to understand which candle had how much volume. And studies I use VWAP. It’s a very beautiful thing. Now you can see that the strategy is very simple. Listen carefully, when you see that your 5 minutes candle it closes below VWAP, then you need to take sell and when it closes above it you need to take buy. In this, you have to take stop loss by if you have sold in below the candle then you don’t have to square off until the candle goes above the VWAP and closes.
As it goes above the VWAP you need to close it. Same if you have to buy in Adaniports in the morning, I would give some options. Suppose if you had bought in this position then you had to close in this position as you can see the red candle. Now you might be thinking that how to set a target. So let’s go step by step. I closed it fast because I had other work to do after making the post. Let me tell you, basically if you get close in here your game will continue until you get an opposite color of the candle with volume.
As you said, its closure is 1175 of Bharat Finance. As you can see a green candle whose closure is 1174.55. Neither it has volume nor it’s above the line and does not have any weightage. So you are not closing it out here, you need to wait for some time. After that see the red candle so somewhere there is a congestion. Again there is a small green candle and then a red candle until you see a big red volume candle. As you can see while I was making the post there was some candle still building up but it’s still not completed as you can see two small candles and then red was made.
If you want a proper close one as you can see this one close of 1175 and sell it then you can easily reach till 1167.8. See it’s so simple you get 8 points. If you had taken 500 quantities you could easily get ₹4000. Same. Now if you see Indigo. Whatever you see is transparent. In indigo we also took sell. I want to tell you how to do stock picks. First, as I opened it is negative and as you can see here it has a proper closure below it is 1012.15 but let’s take 1012 as it’s closure. Now see here there is green closure which has a volume of 47.5.
But see the other candles of volume 81.6, 76.8, 80.6 it’s less than the half and neither has it closed up. So we need to wait. If you want you can book it here and gain 5-6 points but hold the candle. According to me, exit should be done in this candle at 990. If you get 990 after selling 1012 you get profited. You need to check that in the future don’t check in cash. Let’s talk of Adaniports, in this I had sell. Now you might be asking me to sell it in a trending market to earn money as it can be earned from anywhere if you have a strategy. See the close out here.
The volume is more so you need to be cautious because of which I closed Adaniports as fast as possible. I had gone down and tidally I went up because there was buyers from somewhere so I closed it fast for better. You need to keep 3 things in mind. Now you have asked from where do I get stock? You simply have to go to the NSE website and search top 10 winners and top 10 losers. Then you have to select F&O securities. Then in the morning, first 15-20 minutes you have to check the top gainers and top losers. Then check NIFTY 50 and then check the losers. Now In Indigo was there in the morning and is still there now and Bharat Finance was also there since morning. Speaking of Adani ports, we had seen it in gainers in the morning. That doesn’t mean anything it’s only for selection.
Since it’s a gainer, you have to buy. If you want you can buy it here. There is another caution here at 925. If you are a conservative trader then don’t go for trading and if you are an aggressive trader then only trade because it’s very risky. Firstly orders come from brokers and big people. So instead of taking a risk you can sell it here and earn. Even if you buy at this point there would a red candle at this point and closed at 390.25 of equal volume. Even if a loss of 1 or 2 points it would not affect much. As I always say it’s not only about strategy but also technical indication and technical setup does not give 100% assurance. The main point is you should know where to lose books and where to profit run. If you follow this you can surely earn profit. I hope you have understood the simple strategy. If you have any questions make sure to tell me in the comment box, Thank you so much for reading,
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