@TomTurboInvest First of all, thank you once again for sharing your knowledge - hats off!
I have carefully studied and understood parts 1 to 3.
I am now stumbling with part 4. But that's not because of you, but because of a lack of basic knowledge on my part. That's not surprising, because I'm a beginner in the field of trading, which means I still need to acquire a lot of knowledge and understanding.
Therefore, I would like to ask if it is ok for you to ask some "stupid" questions on my part.
My goal is to understand and comprehend your approach and then be able to apply it (initially in the "practice room" via paper trading at Tradingview).
Does that suit you?
I have carefully studied and understood parts 1 to 3.
I am now stumbling with part 4. But that's not because of you, but because of a lack of basic knowledge on my part. That's not surprising, because I'm a beginner in the field of trading, which means I still need to acquire a lot of knowledge and understanding.
Therefore, I would like to ask if it is ok for you to ask some "stupid" questions on my part.
My goal is to understand and comprehend your approach and then be able to apply it (initially in the "practice room" via paper trading at Tradingview).
Does that suit you?
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@Investor-College feel free to ask what interests you, that's what a forum is for. As I'm always away on business, it can sometimes take a few days, but an answer will come, and if I don't know the answer, I'll let you know 😅
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•@TomTurboInvest Ok - I think that's great!
As I understand it, you carry out 3 main steps:
1. show SMA 5, 50 and 200 days
2. show VRVP
3. anchor VWAP
You explain all three, but I realize that I am quickly left behind (which is probably obvious to you, but I want to be taken along and learn from you).
Let's go slowly so that I can keep up: Let's look at the first step. Here are my questions:
- What exactly do you deduce from the first picture showing Uber's price action over about 1 year, with SMA 5, 20 and 200 plotted on it?
- What is going through your mind here, what are your thoughts on this?
- What do you recognize at this point?
- What makes this chart and the SMAs interesting for you, what do you deduce from it, what do you notice?
- What is the quintessence or summary for you after this first step?
I'm quite curious, I know. But it has to do with my job as a journalist, which I did for almost 25 years. And incidentally that's why I was a regular at Sapphire :-)
As I understand it, you carry out 3 main steps:
1. show SMA 5, 50 and 200 days
2. show VRVP
3. anchor VWAP
You explain all three, but I realize that I am quickly left behind (which is probably obvious to you, but I want to be taken along and learn from you).
Let's go slowly so that I can keep up: Let's look at the first step. Here are my questions:
- What exactly do you deduce from the first picture showing Uber's price action over about 1 year, with SMA 5, 20 and 200 plotted on it?
- What is going through your mind here, what are your thoughts on this?
- What do you recognize at this point?
- What makes this chart and the SMAs interesting for you, what do you deduce from it, what do you notice?
- What is the quintessence or summary for you after this first step?
I'm quite curious, I know. But it has to do with my job as a journalist, which I did for almost 25 years. And incidentally that's why I was a regular at Sapphire :-)
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•@Investor-College 😉 I'm on my way to Madrid for SAPPHIRE so I have a bit of time.
From the SMAs I read the trend - from the SMA200 - moving average price of the last 200 days - I read the overarching trend. from the 50s the "shorter" term trend and from the 5 days the current short term trend. The 5-day is relevant for me for daily/weekly trades.
If they are all pointing upwards, this is a stable uptrend, so focus on long trades. If the SMAs point in different directions, e.g. the 200 and 50 point upwards, but the current 5-day trend points downwards, then for me this means, for example, I wait until the price reaches the VWAP again or one of the next lower volume edges, which could then be a good entry for longs, as the overriding trend such as the 200 and 50 is still pointing upwards. It will then probably only be a short setback within the trend channel.
It is almost impossible to describe all of this in a commentary, but I hope this example shows what you can read from it. It should be noted that the 200 and 50 are always lagging indicators. This means that even if the trend reverses, they will still point upwards for some time! My contributions do not replace a trader's education - the intention was to show what a "hobby" trader does, what it takes and what the time expenditure is. That not everything that has to do with trading is always bad 😉
General rule - don't trade against the trend! Always follow the trend in the short term - watch out for consolidation in the price actions (price development of the candles) and then get in. In the long term, I always enter turnaround trades, i.e. although the trend is still going down, I try to anticipate a bottom from the volume and volume-weighted data - but there is never 100% certainty, so losing trades are also part of the business.
From the SMAs I read the trend - from the SMA200 - moving average price of the last 200 days - I read the overarching trend. from the 50s the "shorter" term trend and from the 5 days the current short term trend. The 5-day is relevant for me for daily/weekly trades.
If they are all pointing upwards, this is a stable uptrend, so focus on long trades. If the SMAs point in different directions, e.g. the 200 and 50 point upwards, but the current 5-day trend points downwards, then for me this means, for example, I wait until the price reaches the VWAP again or one of the next lower volume edges, which could then be a good entry for longs, as the overriding trend such as the 200 and 50 is still pointing upwards. It will then probably only be a short setback within the trend channel.
It is almost impossible to describe all of this in a commentary, but I hope this example shows what you can read from it. It should be noted that the 200 and 50 are always lagging indicators. This means that even if the trend reverses, they will still point upwards for some time! My contributions do not replace a trader's education - the intention was to show what a "hobby" trader does, what it takes and what the time expenditure is. That not everything that has to do with trading is always bad 😉
General rule - don't trade against the trend! Always follow the trend in the short term - watch out for consolidation in the price actions (price development of the candles) and then get in. In the long term, I always enter turnaround trades, i.e. although the trend is still going down, I try to anticipate a bottom from the volume and volume-weighted data - but there is never 100% certainty, so losing trades are also part of the business.
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•@TomTurboInvest Perfectly explained, I understood it and can understand it - it fits perfectly.
So let's move on to step 2: The VRVP is displayed.
My questions about this:
- What range or observation period makes sense?
- What do you read from this, what insights do you gain here?
- Does this complement step 1 or can it be seen as two "separate" insights (which is my guess)?
Have a good trip and good luck!
So let's move on to step 2: The VRVP is displayed.
My questions about this:
- What range or observation period makes sense?
- What do you read from this, what insights do you gain here?
- Does this complement step 1 or can it be seen as two "separate" insights (which is my guess)?
Have a good trip and good luck!
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•@Investor-College The sensible time period for the VRVP depends a little on the time period you want to invest in the trade.
For short-term trades, I often only look at the last 2-3 months, but if I'm going for a longer trade or turnaround, then I also look back a few years.
For me, the VRVP and VWAP are actually separate steps, but you still have to take all the information into account when making decisions.
The so-called high volume nodes and low volume nodes are interesting, from which you can deduce at which prices a lot of volume was traded, or just a little.
High volume nodes show you resistance/support, whereas low volume nodes are areas where even small volumes can lead to larger price movements.
I recommend that you simply google VRVP and search for YT videos, there is a lot of content there. It is not possible to explain this in detail in a comment.
If you are interested, do a lot of your own research, hand in hand with the open chart in a tool.
For short-term trades, I often only look at the last 2-3 months, but if I'm going for a longer trade or turnaround, then I also look back a few years.
For me, the VRVP and VWAP are actually separate steps, but you still have to take all the information into account when making decisions.
The so-called high volume nodes and low volume nodes are interesting, from which you can deduce at which prices a lot of volume was traded, or just a little.
High volume nodes show you resistance/support, whereas low volume nodes are areas where even small volumes can lead to larger price movements.
I recommend that you simply google VRVP and search for YT videos, there is a lot of content there. It is not possible to explain this in detail in a comment.
If you are interested, do a lot of your own research, hand in hand with the open chart in a tool.
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