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Trading with VWAP and Price Action

  • #81
  • Apr 16, 2021 8:38am Apr 16, 2021 8:38am
Quoting hanxyork
Hi Smmtrader, I have been researching and working on VWAP all this time and also testing and practicing. I have found a way to scan for trades using your indicator VWAP and even is possible to get alerts, in fact it is very simple and I would like to share this info. Also I have a request, is there any possible that you can add to your VWAP indicator a Custom Moving Averages indicator like the one that comes inside MT4?. Having a moving average line like the Linear Weighted will allow us to find a better intersection between price and the VWAP line,...
Hi Hanxyork, Thank you for the detailed post. I noticed that "mwfx108" has a copyright on this indicator. I believe "mwfx108" would have been the original creator and it would probably be appropriate for mwfx108 to make edits. Did you reach out to mwfx108?

In order to better understand the moving average cross approach you had listed, can you please provide a screenshot / mention which moving averages to add to the chart so that i can get a visual? I understand that you would like to have those added in the VWAP indicator itself so that we can get alerts from a single indicator..
  • #82
  • Edited 9:08am Apr 16, 2021 8:47am | Edited 9:08am
Quoting Thakri
{quote} Thank you for checking the charts for me...few things I would like to clear please Do we have to wait till we see 4h break, retest and reject and then only check m15 chart? Can we not take a trade if we only see the set up on m15 but not in h4? Do take a trade only if we see Marubozu candle with volume bars touching 200ema? Can we not take a trade if we see Marubozu candle but no signal on volume or we see high volume price, price moving in our direction but no marubozu candle? Sometimes I see the Candle also with high volume but lower than...
You are welcome.

1) Multi timeframe confirmation usually results in higher probability trades. Dual confirmation on H4 and M15 gets the odds more in the favor of the trade

2) Ensuring the confluence of the following usually results in a higher probability set up
a) Formation of a good Marubozu candle
b) High volume
You could take trade without the high volume but since this is a probability game, it is better to get the odds more in the favor of the trade.

3) I am happy to hear that this strategy is helping you trade better. I found one thread some time ago regarding smart money type of trading and you could check it out if you like to.
https://www.forexfactory.com/thread/...akers-at-their

Since trading on M15 is becoming increasingly difficult for me, i have been trying to figure out the rules for this method and started a journal for the same -
https://www.forexfactory.com/thread/...0#post13497640

I am trying to trade this on H1 and M30. This is another excellent method in my opinion - but needs practice and understanding of what the rules might be.
  • #83
  • Apr 16, 2021 9:31am Apr 16, 2021 9:31am
Quoting Smmtrader
{quote} You are welcome. 1) Multi timeframe confirmation usually results in higher probability trades. Dual confirmation on H4 and M15 gets the odds more in the favor of the trade 2) Ensuring the confluence of the following usually results in a higher probability set up a) Formation of a good Marubozu candle b) High volume You could take trade without the high volume but since this is a probability game, it is better to get the odds more in the favor of the trade. 3) I am happy to hear that this strategy is helping you trade better. I found one...
Cool. I never heard of this Marubozu candle before I came across you, now my eyes look for them everywhere. Will you just trade the new strategy you are working on and stick to that and I guess the 4H and HTF strategy of yours?
  • #84
  • Apr 16, 2021 9:56am Apr 16, 2021 9:56am
Quoting Thakri
{quote} Cool. I never heard of this Marubozu candle before I came across you, now my eyes look for them everywhere. Will you just trade the new strategy you are working on and stick to that and I guess the 4H and HTF strategy of yours?
1) The 4H and HTF works for trending moves. I had provided some initial introduction and an indicator that needs manual input.

2) The other strategy for which i have started a journal works for reversal trades at key demand / supply zones.

Please focus on one strategy ( VWAP on M15 ) initially as it can get confusing to jump across multiple strategies. Once you are comfortable with one strategy and are consistently profitable, if you like, you can explore other strategies.

The reason i pointed out to the other strategy is because you expressed interest in "Smart Money" like strategy and the thread that Newbie2014 started is exactly that.

I am going to primarily focus on the "Smart money" strategy as i find that very interesting. I know - i have jumped across multiple strategies - all of them are good in one way or another - i had been trying to find out what works for my schedule.

Hope this helps.
  • #85
  • Edited 11:14am Apr 16, 2021 10:52am | Edited 11:14am
Hi Smmtrader,

I really thank you for your reply.
On April 14, I sent an email to "mwfx108", (using the email showing on his code) with my request in order to add the Custom Moving Averages functions of the indicator with the same name that already comes with MT4, adding the respective buffer (two functions, 2 buffers in one indicator), even I asked him on this email to tell me please what would be needed in order to make this addition, unfortunately I did not get any answer from him until this day. I am respectful of the copyrights and my request is to make the addition of the moving averages function in order to make an improvement on it that will help the users, keeping the original heading information, email, etc., of the original code so he will continue keeping it's ownership and nobody else.

The reason of this addition, is to use VWAP combined with one moving average in order to generate cross signals, reducing the noise, getting these cross signals from this one indicator only that must have 2 buffers and that will be connected to Pin ONE (indicator) sending these cross signals alerts to us and / or to an EA. This moving average could be a linear weighted with a small period but I would like to experiment with other ones and different values (simple, exponential and smoothed), that is why the functions of the Custom Averages Indicator look great.

Now, this idea remain inside the approach of this thread, keeping support and resistance, the 200 MA, price and action and etc., and at the same time will help us to detect when the price is crossing the VWAP level without the need to scan chart by chart visually.

Here some screenshots:
AUDCAD M1, earlier today, Cyan line is LWMA # 8, Royal Blue is the 200 MA, the price got close to the VWAP level where several candles where touching this level generating noise but the MA made a clean cross on this level what could be our cross signal alert, in the background the Pin One Indicator telling the levels of the price versus the VWAP level on different pairs, it can not give us a cross signal at this moment because a second buffer for the MA will be needed.
AUDUSD M5, after the 3rd hour of this new trading day (today also).

Thank you very much again.
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  • #86
  • Apr 16, 2021 10:53am Apr 16, 2021 10:53am
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  • #87
  • Apr 16, 2021 11:43am Apr 16, 2021 11:43am
Quoting hanxyork
Hi Smmtrader, I really thank you for your reply. On April 14, I sent an email to "mwfx108", (using the email showing on his code) with my request in order to add the Custom Moving Averages functions of the indicator with the same name that already comes with MT4, adding the respective buffer (two functions, 2 buffers in one indicator), even I asked him on this email to tell me please what would be needed in order to make this addition, unfortunately I did not get any answer from him until this day. I am respectful of the copyrights and my request...
Hi hanxyork, thank you for the details. I made some changes and you will get just an alert when EMA X price crosses VWAP Up or DOWN. For the EMA to show on the same indicator, i guess additional buffers needs to be added. I have not worked with buffers much. You can select the EMA period in the input parameter of the Indicator.
Attached File(s)
File Type: mq4 VWAP_EMA_Cross_Alerts.mq4   4 KB | 1,146 downloads


Please see if this helps you.
  • #88
  • Apr 16, 2021 12:37pm Apr 16, 2021 12:37pm
Quoting Smmtrader
{quote} 1) The 4H and HTF works for trending moves. I had provided some initial introduction and an indicator that needs manual input. 2) The other strategy for which i have started a journal works for reversal trades at key demand / supply zones. Please focus on one strategy ( VWAP on M15 ) initially as it can get confusing to jump across multiple strategies. Once you are comfortable with one strategy and are consistently profitable, if you like, you can explore other strategies. The reason i pointed out to the other strategy is because you expressed...
You are right I will stick with the m15 of course, which also can last long if we catch the top of bottom...I learned to trade Order Blocks to Order Blocks, ranges and market structure and wyckoff (it was killing my life lol) but I was struggling with entry coz I had to guess too many stuffs. I like to enter with your Marubozu candle after the break, retest, rejection which is strong confluence as entry confirmation...where are you from and what do you do? Please don't have to answer any personal stuff here if you don't want yeah, I am just asking coz you talked about schedule.
  • #89
  • Edited 4:27pm Apr 16, 2021 2:26pm | Edited 4:27pm
Quoting Thakri
{quote} You are right I will stick with the m15 of course, which also can last long if we catch the top of bottom...I learned to trade Order Blocks to Order Blocks, ranges and market structure and wyckoff (it was killing my life lol) but I was struggling with entry coz I had to guess too many stuffs. I like to enter with your Marubozu candle after the break, retest, rejection which is strong confluence as entry confirmation...where are you from and what do you do? Please don't have to answer any personal stuff here if you don't want yeah, I am just...
Thank you for the questions. I tried to keep the VWAP system simple. I was all over the place over the past decade trying to figure out what works for me. It is past midnight for me when London markets open and with a job, it is tough to be awake and monitor the charts at that time. I am in the U.S.
  • #90
  • Apr 16, 2021 5:17pm Apr 16, 2021 5:17pm
Quoting Smmtrader
{quote} Thank you for the questions. I tried to keep the VWAP system simple. I was all over the place over the past decade trying to figure out what works for me. It is past midnight for me when London markets open and with a job, it is tough to be awake and monitor the charts at that time. I am in the U.S.
I don't know how you can do that, I still suck with London open being 9am for me here in Germany. When I am more confident then I can trade for you too on my time, let me practice more plz haha this strategy fits good to you for sure then...after the Covid lockdown is over here I will be sticking to this too, then I will be sleeping around 5 am
  • #91
  • Edited 9:10am Apr 18, 2021 7:52am | Edited 9:10am
Quoting Smmtrader
For SELL trades on the following pairs: AUDUSD, EURUSD, NZDUSD, NZDJPY A movement similar to the one below must occur on M15 and a good BEARISH Marubozu like candle with NO bottom wick OR a tiny bottom wick should form around points C or C1 before entering the trades. We wait for the right opportunity and do not chase the price. {image}
This is gold if this occurs around the Demand and Supply area or some other specific areas. I am doing some backtest on this 4h and 15m TF. I would like to get some more details please to get rid of my doubts, I would like to know when exactly are we done with 4h confirmation before we move to 15m chart to look for set up and entry?

1. When 4h breaks the trendline? (Before retest, rejection)
2. When 4H breaks the trendline, retest and rejection (bit of a gap from trendline)?
3. When 4H breaks the trendline, retest, rejection and when a marubozu candle appears?

I am a bit confused coz sometimes price does't come to retest the trendline on 4h but 15 minutes gives a good setup and sometimes we miss a bit of move if we wait till the full setup like no.3.

4. And also when we go to 15m after 4h confirmation
a. should do we draw new trendline and start from there?
b. or should we just follow 4h trendline, 200ema, vwap line and look for setup?

Hope it's not confusing, enjoy your weekend man.
  • #92
  • Edited 11:02am Apr 18, 2021 9:50am | Edited 11:02am
Quoting Thakri
{quote} This is gold if this occurs around the Demand and Supply area or some other specific areas. I am doing some backtest on this 4h and 15m TF. I would like to get some more details please to get rid of my doubts, I would like to know when exactly are we done with 4h confirmation before we move to 15m chart to look for set up and entry? 1. When 4h breaks the trendline? (Before retest, rejection) 2. When 4H breaks the trendline, retest and rejection (bit of a gap from trendline)? 3. When 4H breaks the trendline, retest, rejection and when a marubozu...
Since you mentioned Demand and Supply zones, please check the post on the journal - check posts 16 through 20 to understand the power of Demand and Supply zones. (Especially post # 17 that explains more about the type of Demand / Supply zones)

https://www.forexfactory.com/thread/...1#post13498801

To answer your questions: The market does what the market does. I only pick those trades that satisfy the criteria i am looking for and i do not chase the price.

1. Clear TL break on H4 (The price must show strength or weakness)

2. Clear, strong retest

3. Clear, strong rejection (It is okay if the price does not go all the way to the TL. The price sometimes rejects from the previous PA)

While the rejection is being formed, you can check the PA on H1 and M15 and if you get a strong Marubozu along with the other criteria, that should help.

You can draw separate TL's on M15 to stay in the trade as long as the TL is respected or the TL gets deeper (the move gets stronger)

Hope this helps. Stay safe and have a good weekend.

Green pips!
  • #93
  • Apr 18, 2021 10:01am Apr 18, 2021 10:01am
Before you start trading, know the demand and supply zones ahead of time - especially those that are fresh and strong.

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  • #94
  • Apr 19, 2021 1:02pm Apr 19, 2021 1:02pm
Quoting Smmtrader
{quote} Since you mentioned Demand and Supply zones, please check the post on the journal - check posts 16 through 20 to understand the power of Demand and Supply zones. (Especially post # 17 that explains more about the type of Demand / Supply zones) https://www.forexfactory.com/thread/...1#post13498801 To answer your questions: The market does what the market does. I only pick those trades that satisfy the criteria i am looking for and i do not chase the price. 1. Clear TL break on H4 (The price must show strength or weakness)...
Great, thanks a lot now it's crystal clear for me.
  • #95
  • Apr 19, 2021 1:16pm Apr 19, 2021 1:16pm
Quoting Smmtrader
Before you start trading, know the demand and supply zones ahead of time - especially those that are fresh and strong. {image} {image} {image}
I actually always do that but it gets frustrating not knowing which supply/demand, Order block will hold. Now after coming across your way of trading, I am finding trendlines useful, I sort of watch out for price and trendline break around the supply/demand areas on the premium and discount areas on the range. To be honest I like scalping strategies like this one. Simple, winning rate and RR making me pocket some cash of the week. I rather sit there take trades all day when I have my confirmation then sit there trying to figure out which side market will head to, it does my head in. Like you said, nobody knows what market is going to do next, so why put extra stress on ourselves?
  • #96
  • Edited 3:36pm Apr 19, 2021 1:29pm | Edited 3:36pm
Quoting Thakri
{quote} I actually always do that but it gets frustrating not knowing which supply/demand, Order block will hold. Now after coming across your way of trading, I am finding trendlines useful, I sort of watch out for price and trendline break around the supply/demand areas on the premium and discount areas on the range. To be honest I like scalping strategies like this one. Simple, winning rate and RR making me pocket some cash of the week. I rather sit there take trades all day when I have my confirmation then sit there trying to figure out which...
Scalping did not work for me. It needed way too much screen time, stress and leading to more mistakes.

Using the Supply / Demand system, the results shown by Newbie2014 are realistic and achievable. We don't need the screen time required by scalping systems (for me anyway). Prepare the charts with Supply / Demand Zones ahead of time ( about an hour's effort ). Once we understand how to use it, it becomes a habit and routine.

Please continue with the system you are working with patience and discipline. We are only trying to get the odds in the favor of the trade and it is definitely possible with a disciplined approach.

Fresh, Strong Demand / Supply zones from which price had taken off (UP or DOWN) at an angle of 75 to 90 degrees (visually) are more likely to turn the price especially if you see a

1) Strong false break out (Crack and Snap)

2) Strong pattern (one of the below)
M
W
Head and Shoulders
Inverted Head and Shoulders.

Once the price moves in the direction of the trade (giving enough room for market to move), move your SL to BE. Next let market the do its work. Minimize the losses to the trading account.
  • #97
  • Apr 19, 2021 1:53pm Apr 19, 2021 1:53pm
Quoting Smmtrader
{quote} Scalping did not work for me. It needed way too much screen time, stress and leading to more mistakes. Using the Supply / Demand system, the results shown by Newbie2014 are realistic and achievable. We don't need the screen time required by scalping systems (for me anyway). Prepare the charts with Supply / Demand Zones ahead of time ( about an hour's effort ). Once we understand how to use it, it becomes a habit and routine. Please continue with the system you are working with patience and discipline. We are only trying to get the odds in...
Thank you for your words...Yeah sure I will stick to this with more discipline for sure. I also took some trades today and there are few trades setting up on 4h so will catch them tomorrow or next days for sure.
  • #98
  • Apr 20, 2021 7:29pm Apr 20, 2021 7:29pm
Quoting Smmtrader
{quote} Hi hanxyork, thank you for the details. I made some changes and you will get just an alert when EMA X price crosses VWAP Up or DOWN. For the EMA to show on the same indicator, i guess additional buffers needs to be added. I have not worked with buffers much. You can select the EMA period in the input parameter of the Indicator.{file} Please see if this helps you.
Hi Smmtrader, thank you! I will test it!!
  • #99
  • Jun 11, 2021 4:39am Jun 11, 2021 4:39am
Quoting drsa1970
And what do you think of this setup smmtrader? I did not wait for rejection candle as setup looks like a typical one ... Hopefully! {image}
That level is very important level. becareful when you shorting this type a places. For a proper valid break , PRICE should break the level and move away from it and probably find acceptance (value ) away from the level.best case price shoud break the level with much conviction . in the chart you posted price didnt break the level(in higher time frames price might have not even close below the level) , means that might just be a stop hunts before moving higher. if price break proper then the retest of that level would be a good entry (if others reasons exist the taking the trade like good rejection or PA bar)
Focus, Patience, Discipline, Determination and Perseverance
  • #100
  • Jun 28, 2021 12:59pm Jun 28, 2021 12:59pm
Hello,pl help for vwap. I have been searching for past few days for a vwap which is exactly in the tradingview. I have noticed that in tradingview and in MT4 the vwap are different.
i have tried using all formulas Nothing is working https://forex-station.com/images/smilies/icon_e_sad.png Please help make one for MT4 which is exactly same as tradingview. I have found the the code for tradingview in this site. Great thanks and Regards

The code in trading view is as somone else was facing the same Issue
https://www.mql5.com/en/forum/357780
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