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Want to know one of my most reliable tools for finding perfect entry and exit points?
It's something most traders have access to, but almost nobody uses it correctly.
I'm talking about VWAP (Volume Weighted Average Price) - or as I like to call it, "View Up."
Most traders just slap it on their charts and treat it like any other indicator.
Big mistake.
Why?
Because VWAP isn't just a line on your chart - it's literally showing you where the "average" trader is breaking even.
Think about that for a second...
When price is above VWAP, most traders who bought that day are profitable and when it's below, they're underwater.
This creates predictable behavior patterns that you can exploit - if you know what to look for.
And if you don’t here are a few things you should test…
If you enter a long trade above VWAP, consider placing your stop just below it to manage risk.
Remember that VWAP is most effective when used with other confirmation signals, like volume spikes or momentum indicators.
Practice observing how price reacts to VWAP in different environments because it behaves differently in trending versus choppy markets. .
I use VWAP not just as a reference point, but as a dynamic stop-loss level
So when I enter my trades, I know exactly where my stop should be - right below VWAP.
And this isn't some complex strategy that requires advanced math or expensive software, it's simply about understanding market psychology and using it to your advantage…
VWAP can be your secret weapon if you're day trading options or swing trading stocks. It works in any market condition.
But here's the catch...
You need to understand how to read it properly
How to combine it with other indicators
How do you use it for both entries AND exits?
This is exactly the kind of edge that separates consistently profitable traders from the rest.
Trading with precision,
Team Theta Warrior