 Hello and good evening, everybody. Welcome to the third webinar of the series. Let's discover the volumetric quadratic platform. We will be getting started in a few minutes. I'll just allow a few people to get in. So just a couple minutes and we will be starting. For now, please, I hope everybody can hear me properly. If you wish, just leave me a feedback in the chat. Okay, great. Apparently, everything was great. Okay, so welcome to this webinar. Tonight, we will be talking about the P-WAP. So after the last two webinars, we have talked about the volumetric trading Volsys platform and we had an overview about its main functionalities. Today, we will be starting about some more technical, okay? So we will be starting our topics, talking about the V-WAP indicator. So first of all, what is a V-WAP? I've prepared the chart with the indicator already attached to the chart. Then later on, I will explain how to set properly this indicator. First of all, let me just introduce this indicator and what it is useful for. So basically, V-WAP is the abbreviation for volumetric average price. Basically, this is a tool showing the ratio of a security price to its total trade volume. And it basically provides traders and investors with a measure of the average price at which our securities is traded over a given period of time. In fact, we can say that there can be different kinds of V-WAP. We can have a daily V-WAP. We can have a weekly V-WAP. We can have a yearly V-WAP, okay? Because everything, its calculation is based on time. Normally, most of the analysis we will conduct on our security is applicable to the daily V-WAP, because this comes with an institutional meaning. Okay, so let's say the methods of analyzing V-WAP can be conducted mostly based on the daily V-WAP. It's the one you can see here. So what is it? Actually, you can see many lines here on this chart. The daily V-WAP is this yellow line you can see here. Okay, and as you can see, it's showing you the price at which... Sorry, just a second. Okay, sorry about that. Yeah, I had a tiny technical problem. So basically that's showing us the amount of price at which this is the average volume price at which this security, in this case the S&P 500, this is the asset price waited to its total trade volume. So basically this shows us a benchmark of what a good price for this security for today is. So this can show us different things. For example, it's like a moving average but not based within a period of time. It is based on the asset price compared to its total trading volume per day. Okay, this is a daily V-WAP. So this is basically the asset price based on this total trade volume for the day. That comes with a very important institutional meaning because from the institutional perspective, V-WAP, especially the daily one, is commonly used as a trading benchmark, which of course is considered as such by large institutions and mutual funds. That means that, for example, right now price is trading above V-WAP. Okay, so that wouldn't be a good price to buy because the average price compared to its total volume trade throughout the day was much lower. Okay, so if an institution would like to buy an asset at this price, it wouldn't be that efficient as a buy. In addition to this, V-WAP helps this institution to identify liquidity points where they can execute large orders without disrupting the market, of course, because after accumulating the position, the institution will compare the full price to end of day V-WAP values. So basically, V-WAP is a value that will develop throughout the day, but a very large importance will be the opening and closing price for the day where the V-WAP will be at the end or at the beginning of the day. For example, we can see here this is a five minutes chart. V-WAP, of course, will start exactly at the same price where opening price is at the end of a day because, of course, for example today, when the market has opened, the price was here. So basically, that was the opening price. Let me just quickly change the color. So it is easier to spot. Okay, so market has opened here and V-WAP was moving very close to the price because, of course, there hadn't been so much trading at that point for the day. And as price develops, V-WAP would follow the price where there has been more trading activity. That gives us another clue because during trending days, we will have a slope of the V-WAP giving us an idea of how volume is moving according to the price. And of course, for the very same reason, as price develops and continues to trade throughout the day, V-WAP will reflect always slower what the average price of all the volume trading throughout the day will be. So it will follow price a little bit far, far, okay. So we can get two different informations from this indicator. First of all, its slope would tell us how price is moving, is moving, whether it's trending, if volume is following the price move, and how price will react as the V-WAP gets tested or gets touched. And in fact, we will be talking in a while about two different strategies we can develop using V-WAP, okay. And another point of view, a very interesting point of view we should be considering about using V-WAP in our day trading plan is considering and evaluating what happens when price moves quite far from it, okay. Because as you can see here, I have plotted here on the chart three different standard deviations of the V-WAP itself. What do those lines represent? Each of these lines, which look more like proper bands, okay, those would represent standard deviations level, sorry, lower standard deviations and upper standard deviations, which basically would represent a range where price is likely to be included. So the principle behind it is the mean reverting principle. Price is supposed to be for 95% of the time within the third standard deviation from the V-WAP. It works a little bit exactly like Bollinger bands, but unlike Bollinger bands, this principle is more based on a volume analysis, so it's not related to average upon a specific period of time is based upon the daily trading volume and at what price this volume was traded. That gives us the tool, a very nice tool in order to think about a possible strategy we can use V-WAP for. For example, as price gets and touch and we have some reaction on the one of its standard deviation, what we are likely to see is a mean reversion to the main V-WAP level, okay. Why that comes with a powerful indication, which can be included of course in our trading plan. Considering that whatever is below the V-WAP is considered by institutions and by traders as a cheap price to buy and whatever is above the V-WAP as an expensive price to sell, it is easy to understand that comes with that is somehow connected with the principle of balanced price and unbalanced price. If a price comes to a discount area, of course institutions and traders, responsive buyers, traders will be more likely to look at with interest at those cheap price and there will be more prone to buy those prices and that will help price getting back to its mean reversion value, which is represented exactly by the V-WAP, okay. And the same thing would happen of course on the upper bands as price will reach price considered to be expensive, so interesting to sell. Institutions as well would consider those prices as a good fields if they are looking for sell executions. So of course that it is quite that makes sense in order to trade those days which normally are considered as a trade range they okay. So normally that would apply better to days where we have a flat V-WAP. So its slope wouldn't be too much okay days where a V-WAP is not too sloped. And the other indication V-WAP can tell us when it can give us is unlike this example it's where days where we have a sloping V-WAP because in those cases its slope will give us an indication of trending days. So in that in those days we can use the V-WAP itself as a very good point of support if we have a V-WAP sloping upwards or otherwise downtrend where the V-WAP is slowing downwards. And in these cases what is price expecting to do according to this dynamic. V-WAP would represent a good bouncing point okay for looking for trades going towards the main trends direction. But of course the principle was telling you about standard deviations of course would apply in the opposite sense that means if price is supposed to be 90% of time within the third standard deviation of course the standard deviations will give us the levels for our targets an indication for our targets. For example as you can see here we had price has gone through the V-WAP starting from its first down standard deviation. It has crossed the V-WAP and then we had a pullback which has stopped exactly on the V-WAP line. Okay after that here in this situation we could have thought we could have thought about a long trade okay why because we have gone already above the V-WAP. So after price has reverted back to the V-WAP level of course this could have been considered as a cheap price to buy considering how the majority of volume the average number of volume has traded throughout the day and at which price which is the value that V-WAP gives us okay. Of course after price has reacted here on the V-WAP which is our expected target we have an expectation, a good expectation of what a good target level could be based on the upper standard deviations. So for example if we are planning to start our trade a long trade from here our first target could have been here as soon as price has touched the first standard the first upper standard deviation okay this could have been easily our first target. Second target of course could have been at the second standard deviation. Let's say in terms of trade management in this case is of course this is not a trading strategy what I want to focus on during these webinars it's just giving volume principles okay in order to use those informations during our trades and let's say in terms of practical application of these concepts I would never let trade run until its third standard deviation. Why? Because we know that only 95 percent only five percent of trade are expected statistically speaking going over the third standard deviation okay so of course in terms of probabilities price are more likely to be included within the second standard deviation okay and of course this concept is applicable both in terms of a mean reverting trade and in terms of waiting for a pullback on a sloping VWAP in order to get the price expansion towards the standard deviations number one and number two and of course before we easily understand that VWAP and its standard deviations act like dynamic support and resistance level because of course when a security is trending we like to use VWAP to identify potential level and its standard deviations of course to identify potential level of support or resistance in order to find actionable trades okay of course as I was telling you at the beginning of the webinar one thing to note is that VWAP is much more sensitive to price moves at the start of the day than on the end of the session of course because it is based on cumulative values which get larger toward the end of the session so it will be it will take longer for the VWAP to react accordingly okay of course this is because new data in the end of the session has less effect on the VWAP and its variations so this is how we can use Volsys platform to build this chart and of course starting to look at VWAPs and its standard deviation there is a very simple way to attach VWAP on the chart let's get to my right clicking on the chart and selecting indicators VWAP indicator is included in the volume by price main indicator so all we have to do is is opening the indicator by right clicking on it and as you can see here we have the VWAP option at the end of the available options if we open the option all we have to do is enable and highlight what the VWAP value is also we have to enable the show line option and the developing web option as well with the envelope okay in this case we can choose by clicking here on show settings what which envelope we want to enable or not so in this case I have enabled all these three of them the first one is based on a standard deviation of one the second one is based on a standard deviation of two and the third one is based on a standard deviation value of three okay we can enable and plot in the chart up to five envelopes okay and of course for one of each for each one we can choose the color we want this standard deviation to be plot okay same thing for the VWAP we can and choose or change the color here between the options and of course since the indicator is included within the main indicator volume by price we can also set with the the same indicator a volume profile as well for the day a volume profile will be the topic of the next webinar so we will let me just give you a very quick introduction right now so that we can expand this topic next time at the moment I have of course attached here in the chart a volume profile as well but you can't see it because I have basically made it invisible with the zero with a zero opacity okay so all you have to do is plotting this volume by price indicator with the volume volume profile main indicator set to zero opacity and border width to zero as well otherwise what you'll get is let's make an example 50 percent and border one here we go we have for each day the representation of the volume profile as well I wanted to say that today already because just in case you want to be prepared for next webinar you already have all settings done okay but if you only want to see the WAP at its time indication in deviation all you have to do is for now leaving the plot settings for volume profile main indicator to zero here for volume by price opacity and border to zero as well okay and this is basically what we get acting on the opacity of the volume profile of course why those two indicators come together because B WAP is something which is measured on the day about upon the day so exactly as well as the volume profile so all of the features are included within the same indicator okay so let me just check if some of you have question apparently not so far let me remind you that for if you want to if you want to to take the offer proposed by volumetric trading in collaboration with TickMeal all you have to do is following the link I am attaching in the chat right now because there is a special offer which will be on for all the period where our webinars will be on here it is all right so apparently there aren't any questions so I guess I want to say thank you to all of you for the attention and for attending this webinar next webinar will be next Monday same time and same zoocredential and we will be talking about volume profile so next webinar will be about the main characteristic main features of the volume of a volume profile and there will be two webinars about volume profile because it's quite a complex tool and it will take two webinars to go deeply through it okay so from next time on we will be talking about volume profile and of course we will be as long as we go on with the topics we will try to connect all of the concepts together so basically next time we will also be talking about VWAP and we will try to combine the concepts we have talked about tonight with the new one I will tell you about next week okay one question is the price is the price covers data as well no actually no I mean you can have for the price the platform but you have to have your own data then about terms and conditions everything is explained about the kind of refund tick mill will give you back in terms of terms of conditions of course but no actually you have to have your own data which you can then get get connected to the platform as we were talking about at the first webinar okay but just as a quick reminder you can easily connect your tick mill account to the VWAP platform as you can see here I have an active connection to a tick mill account right now and you can easily do that going on the feed section okay this is the main toolbar of Valsys by selecting feed options all you have to do is selecting feed settings and typing your username and password provided by the data feed provider and after all you have to do is clicking on that feed to get that connected or disconnected as when it's connected you can see it here highlighted in green okay so it's very very easy another question what is your volume profile win rate in today's intraday trading a very good question I currently have let's say a 70% win rate 65-70% win rate if I use a swing intraday strategy but conducted over a projected risk reward ratio to one to one one to one and a half okay so this is my most conservative let's say strategy I use or otherwise but I mostly trade scalping in a scalping strategy with aims to a higher win rate and a lower risk reward ratio thank you so much you're welcome okay so I guess I guess it's all let me know if you have more questions about the platform about the strategy I hope everything is clear about the the VWAP and the way we can use it of course there is still a lot to say about it because actually any any trading strategy involving volume comes with so many variables and so many details but for example this is something that I would like to talk about with you right now very quickly do you remember what I was telling you on the first webinar so why is volume important and how can we tell if the price is supported sustained accompanied by volume and of course when it is worth to consider VWAP as a good support or resistance level for a trade we can use of course the we can combine it to the to the volume considerations we were making at the first webinar here priced as balanced here on the VWAP was priced accompanied by volume I would say yes of course let's not take into too much consideration the first volume Instagram because of course this is the 5 the 330 Instagram which of course would include the US opening so definitely it's it's supposed to be the longest Instagram for the day but we had the first wave upwards with lots of volume lots of volume okay and it was as you can see here most of it was bullish volume since it was it is colored here blue it's pullback it's pullback shows us decreasing volume so basically we have increasing volume on an upward move and decreasing volume on the downwards and where would price react exactly on a sloping VWAP and this is a very simple way to combine concepts together and also this info gives us a very good indication of how we can combine volume related principles together okay all right so that's all I think thank you so much again for your participation for your attention and see you on next webinar next Monday have a good evening and good trading