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The custom indicators were originally created on TDAmeritrade's thinkorswim, but have since been replicated on both TradingView and NinjaTrader 8. Please note that two of the six indicators — Dashboard and Average Volume — are not
able to be created for TradingView, but they are not critical and their absence will not prevent you from
effectively trading the strategy. Intraday, Aspect, DateVWAP and EventVWAP are the four most important indicators, and they are all available on each
of the listed platforms.
Our custom intraday VWAP study, which includes standard deviation bands, dynamic color-coding, and more to reflect the market's current position and slope. Includes options to apply to either Day,
Week or Month periods for 'calendar resetting' averages. Serving as an essential visual reference point, Intraday is a core part of our intraday framework. The
course details how we maximize its utility and implement it alongside the remaining indicators.
Aspect can measure any one of three critical VWAP elements — Position: price distance from VWAP in standard
deviations as a subgraph indicator Slope: rate of change of VWAP to detect
incrementally rising (or waning) directional aggression DevWidth: using VWAP standard deviation
bands as a proxy for expected range, comparing current volatility to historical (‘typical’) volatility as a
ratio Aspect is all about confirmation — that ‘position’ is
diverging from price, that slope is intensifying (or decaying), or that volatility is normal or abnormal.
DateVWAP gives traders the power to launch a volume-weighted average price and deviation bands from any user-input date. Anchor VWAPs to specific fixed dates and times (YYYYMMDD HHMM format) or, with the 'DaysAgo' setting, enable a recurring/rolling average that updates as new days elapse — for example, VWAP over the last five trading days. This study allows traders to quickly gauge the average price since any date visible on the current chart, whether daily or intraday, with additional options to automatically identify — and launch VWAPs from — daily highs or lows. As such, multiple copies of this indicator can be layered on the same chart with distinct colorization for clarity.
Requiring no date input from the user, EventVWAP automatically launches custom-dated VWAPs from relevant
events — earnings, options expiry, user-defined gaps, swing
highs or lows, etc. — to detect longer-term thematic support and resistance. Works on both
intraday and daily charts and includes user-specified thresholds for detection of launch events, such as the
minimum gap % required to qualify. This indicator alone is a massive enhancement for any
long-term VWAP chartist and a significant time-saver (compared to entering dozens of inception
dates by hand).
Four volume averaging methods in either absolute (raw data) or relative (easy comparison) format. Day Cumulative compares current total volume to
historical average total volume at the same time of day, similar to a volume 'pace' or 'schedule'
indicator. Specific Bar is an uncommon method for comparing any
given bar to that same bar on prior (visible) days. Rolling (user-definable) periodic average is a
commonplace, X-bars-back comparison against current volume. Dollar/Percent plots volume in either raw dollar
form (the money transacted during a given candle) or percent-of-average-day’s-volume.
Just as the name implies, Dashboard contains several useful VWAP metrics like price in relation to VWAP (dollars, percent, and StDev) as well as automatic viable position sizing estimation. Each metric can be separately hidden according to preference and the position size calculator is customizable to fit your particular parameters of risk and reward. Appearing in the upper left corner of the chart, Dashboard allows traders to quickly assess a chart’s specific volatility in the context of — and its position relative to — the day's volume-weighted average price.
The first section of the course is dedicated to the intraday use of volume-weighted average price, standard
deviation bands, and the slope of VWAP. We’ll walk you through three of our custom indicators — Intraday,
Dashboard, and Aspect — and show you how each adds to our understanding of the chart. We discuss both the philosophy behind VWAP (why it works) and the practical applications of our strategy.
Before you can learn the specific mechanics of trade entries and exits, you need to understand how we use
VWAP to dissect a chart by applying a consistent visual framework. We’ll also introduce our four primary trade types and multiple price patterns that we routinely use to
participate in both trend and countertrend market environments. Each of these setups can be used in both
directions, so you’ll be able to adapt to the current market conditions and trade either long or short when
the situation calls for it.
Expanded Applications of VWAP
Creating a Better Binary
VWAP Slope and Implications
Standard Deviation Bands
Zach’s Four Primary Trade Types
Additional Intraday Price Patterns
Navigating Countertrend Moves
Capitalizing on Transitional Phases
The second section focuses on alternative uses of VWAP — both macro and micro. We discuss the importance of incorporating multiday VWAPs anchored to key events in a chart’s history and demonstrate how two more of our
custom indicators — DateVWAP and EventVWAP — make it quick and easy to implement these concepts. You’ll learn how to determine the best anchor points, identify likely support/resistance zones on longer
timeframes, and add helpful context to your intraday charts. This section covers the swing trading
applications of VWAP, but day traders will also benefit from the additional context that multiday VWAPs
Multiday VWAP Philosophy
Validating Multiday Anchors
Prioritizing Multiple VWAPs
Combining Intraday + Multiday
Once you have a firm understanding of the custom indicators and the philosophy behind the strategy, we can
now dive into the details. We’ll teach you how to evaluate trade setup quality and use the
support/resistance areas created by various VWAPs to enter/exit trades with a defined plan. Learn how to determine your initial risk parameters and manage ongoing trades that move in your favor. This
section consolidates much of the information presented in Intraday and Multiday and focuses on the practical
implementation of the strategy.
Developing a Trade Plan
Evaluating Potential Trades
Risk & Trade Management
Discussions on trading psychology rarely excite anyone, but it’s still a crucial component of long-term
success. All traders make mistakes, but learning how to continually improve — while minimizing the economic
and emotional impact of such mistakes — is our main focus in this section. The more you know about common struggles that traders face, the more prepared you’ll be when you encounter
them, sparing precious money and mental capital.
Cycle of Successful Trading
Common Mental Hurdles
The final section is all about tying up loose ends. We discuss the final custom indicator — Average Volume —
and how it can be used to complement your trading. Zach also covers his personal trading setup on
thinkorswim and how he best utilizes their static and flexible chart grids throughout the day. The numerous trade examples go hand-in-hand with the mechanics you learned in section three, and an additional Q&A segment fills in the gaps of any lingering questions that traders typically have after
learning about our approach.
Average Volume Overview
thinkorswim Grid Layouts
Intraday Trade Examples
Multiday Trade Examples