Why I Started Using This Day Trading Indicator (the best!)

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  • Опубликовано: 8 дек 2019
  • Whether you are day trading or swing trading, when it comes to what technical indicators to use, there are many to choose from. This can be a very overwhelming challenge for beginning traders who are just getting started in the stock market; however, it does not need to be. I have been trading stocks for over a decade and the one secret I've discovered is that "less is more". You do not need to have dozens of technical indicators in order to be a successful trader. With all that being said, I have recently started using a new indicator that I have found to be extremely helpful. The Volume Weighted Average Price (VWAP) indicator has been around for a long time, yet, I just started to use it (with great success). What is the VWAP? How does it work? I discuss this along with my reasoning for deciding to use what many other traders consider the best technical indicator to use within a day trading strategy.
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Комментарии • 2,9 тыс.

  • @cardio10101
    @cardio10101 4 года назад +1099

    When someone , graciously, takes the time out of their day to educate you like this it means that they really care!

    • @claytrader
      @claytrader  4 года назад +51

      Thanks for the kind words

    • @cardio10101
      @cardio10101 4 года назад +18

      @@claytrader
      Anytime brother.
      That's the least I can do for someone that occupies a few hours of my weekends helping me become a better trader.
      ps
      Besides, it distracts my mind from the pain of being stuck in a wheelchair.
      THX

    • @claytrader
      @claytrader  4 года назад +14

      @@cardio10101 cheers and sorry to hear of your situation

    • @ericspaniol2219
      @ericspaniol2219 4 года назад +2

      Awesome video for beginners

    • @claytrader
      @claytrader  4 года назад +4

      @@ericspaniol2219 cheers Eric

  • @ttupimptyte
    @ttupimptyte 4 года назад +28

    I love how real this video is....I almost clicked on another video as my ADD kicks in and I honestly enjoyed how real you were and how I could relate to it myself and the similarities as to a logical mindset is concerned as well. Thanks Clay!

    • @claytrader
      @claytrader  4 года назад

      Thanks for the feedback Ty!

  • @brynerlee
    @brynerlee 3 года назад +23

    Just watched this 2 years after you posted it...I finally understand what VWAP is. Thank you so much Clay! I am still learning what the heck I am supposed to do as a trader, from setting up my trading app to what trading setup to use. I’m clueless, but I won’t stop learning. Thanks to you, I’m inspired to learn more!

    • @claytrader
      @claytrader  3 года назад +2

      I'd encourage you to sign up for my (free) class I offer here claytrader.com/1-hour-trader-transformation/

    • @brynerlee
      @brynerlee 3 года назад

      @@claytrader registered for the class :)

    • @claytrader
      @claytrader  3 года назад

      @@brynerlee great!

    • @abdullahal-shimri3091
      @abdullahal-shimri3091 10 месяцев назад

      @@brynerlee Have you attend financial independence yet?

  • @sybiliverson7471
    @sybiliverson7471 4 года назад +14

    I've been day trading since last May. My husband and I use the VWAP to find our entry points. I agree with what your saying, nice job.

  • @PortCapital
    @PortCapital 4 года назад +660

    Clay your chalk board skills are fantastic, very satisfying to watch

    • @claytrader
      @claytrader  4 года назад +46

      Took me years to perfect. Truly an art.............................

    • @alphatradingmethod1193
      @alphatradingmethod1193 4 года назад +13

      ClayTrader can you share what you use??? I mean it looks like a whiteboard marker.

    • @Misspotat
      @Misspotat 4 года назад +13

      The noise hurts my soul

    • @claytrader
      @claytrader  4 года назад +4

      @@Misspotat so sorry!

    • @The_Janitors_Closet
      @The_Janitors_Closet 4 года назад +1

      Must be nice... I’m left handed ☹️

  • @michaelwaring6477
    @michaelwaring6477 4 года назад +47

    Best explanation of vwap I’ve seen so far. Excellent video

    • @claytrader
      @claytrader  4 года назад

      Thanks Michael. Glad you found it helpful.

  • @prometheus7504
    @prometheus7504 4 года назад +54

    I have watched several of your videos . That being said this is the one that got me to sub to you. The fact you can admit to a mistake or what you perceive as one earns my respect.

    • @claytrader
      @claytrader  4 года назад +3

      Welcome to the channel Jack!

  • @rajm5022
    @rajm5022 4 года назад +5

    Clay, you have awesome teaching skills. For someone new to this, I am slowly starting to get a grasp of what you are talking (there are other channels where stuff just went right over my head). Thank you for the effort you put in, I really appreciate it.

  • @vvm101
    @vvm101 4 года назад +15

    Love the color chalk details ! Thanks for simple breakdown

  • @SoSoSlick420
    @SoSoSlick420 4 года назад +12

    Definitely gonna try. Thank you for everything. I just started but you've already helped many more than others and I made a good day on KO Monday morning because of you so thank you.

    • @claytrader
      @claytrader  4 года назад +1

      Thanks for watching!

    • @richardhp77
      @richardhp77 3 года назад +1

      Be curious to know if you're still making money day-trading or if you burnt out? What's the true ROI on content like this?

    • @SoSoSlick420
      @SoSoSlick420 3 года назад +1

      @@richardhp77 Love the follow up. I myself have stopped day trading. While I was finding some success I could wrap my mind around what was actually happening in the sense of perceived value vs actual. The market seems manipulated and it's pretty apparent when CEO after CEO cashes out at the exact right time, time after time. I managed to find the most success just watching what the rest of the new folks were doing in the comment sections of videos and riding their emotional wave. Doing that helped me hit on Moderna and a couple SPACs and then I just sold out right away. Now I'm sitting on a ton of profit that I have no idea what to do with. XRP? Gold? Chinese digital? Haha. I've switched temporarily to sports cards cause it's a little more fun and a lot less stressful. Definitely appreciate the follow up and the content while I invested it. Enjoy the day.

    • @richardhp77
      @richardhp77 3 года назад

      @@SoSoSlick420 Ok that's interesting. My feeling is that you are probably in the minority in that you actually made a profit, but even then you've highlighted something very important: that doing it consistently over time is much more difficult. This idea that you can easily quit your 9-5 and do day-trading seems like a fantasy.
      You also wonder how much of Clay's revenue comes from actual trading and how much form his $2000 courses. One is obviously a much more reliable stream of income. Also how can he be promoting this use of the VWAP without providing any back-testing to show that it's even remotely likely to lead to a profit? And if it was that simple to just look at some indicators and make a mean bank why hasn't that extraordinary profit been arbitraged out of the market yet?

    • @SoSoSlick420
      @SoSoSlick420 3 года назад

      @@richardhp77 You sound just like I did awhile back too when I was questioning it all. All I know is, I did much better playing the moves of the folks in the comment sections then I did anything else. But even then it was the market movement after-hours that drove me out of the daily grind. And also, I took massive hits in the beginning so my making a profit was getting me out of the whole and back to barely above water.

  • @shedlight01
    @shedlight01 3 года назад +1

    watching in 2021, i love your teaching style. you broke this concept down in a very easy and fun way. i will be watching all of your vids. thanks for being a great teacher.

  • @jamesjones-uy1dy
    @jamesjones-uy1dy 2 года назад

    Every now and then, I come back to watch this video. Excellent explanation of VWAP. It really breaks it down to a small timer like me. Thanks, Clay.

  • @crispy7215
    @crispy7215 4 года назад +125

    "Prices below tend to rise back up, prices above tend to *rise* back down. Cheers.

    • @claytrader
      @claytrader  4 года назад +11

      roger that!

    • @rudon9070
      @rudon9070 3 года назад +1

      Thanks u saved me up 13 mins :D

    • @claytrader
      @claytrader  3 года назад +19

      @@rudon9070 lol.... and then people blame the markets being rigged... no way it could be people are looking to cut as many corners as possible

    • @adityavikrammittal4396
      @adityavikrammittal4396 3 года назад

      @@claytrader i guess he meant to say, rather than *rise* back down it should be *fall* back down :P

    • @claytrader
      @claytrader  3 года назад +1

      @@adityavikrammittal4396 perhaps!

  • @MalakShelomohTrading
    @MalakShelomohTrading 4 года назад +143

    I like the breakdown, very simple definition of VWAP

    • @claytrader
      @claytrader  4 года назад +2

      Thanks for feedback!

    • @eddyvideostar
      @eddyvideostar 3 года назад +1

      Kaixo! King Yedidyah R: The breakdown is always useful to consider as *education,* whereas, the casino is mostly run by the house, which prints realities, and not charts of art.

    • @shortsniper100x3
      @shortsniper100x3 3 года назад +1

      agreed & subscribed

    • @MalakShelomohTrading
      @MalakShelomohTrading 3 года назад

      @@shortsniper100x3 Clay is great channel to subscribe to. Good Job 👍🏽

  • @anthuanjm
    @anthuanjm 3 года назад +1

    Wow....Finally Someone Explains This To Me The Right Way...Thank You So Much Clay. GOD BLESS YOU

  • @thesupernerdgaming6786
    @thesupernerdgaming6786 3 года назад

    I’ve been watching your videos because I’ve been trying to learn more about stocks, and you are by far the most clean spoken person to display this stuff. Very easy to understand and to follow along with what you say, I learned a lot!

  • @bobpattison1739
    @bobpattison1739 3 года назад +3

    Clay, I’m a total newbie in the mode of collecting info on day trading and have been listening to all this terminology that I have not heard of before so I REALLY appreciate your detailed explanation of the vwap. Thanks!!

  • @diannad8905
    @diannad8905 4 года назад +13

    I just added VW too my charts this year, even though I had heard about it, too. Very cool indicator.....fun to use it both long and short in combination with other indicators. Btw, don’t beat yourself up, as it took me hearing it from a trader that I truly respect before I would even look at it. We all them there thingy’s called an EGO. The cool thing is we have the opportunity each trading day to have a check-in or chat with the EGO. And more amazingly, you are actually willing to be authentic about it! Keep up the great work!

    • @claytrader
      @claytrader  4 года назад

      Thanks Dianna!

    • @danielevans5134
      @danielevans5134 3 года назад

      Dianna, what are you using where you could the vwap too your charts?

  • @leonmellingen3633
    @leonmellingen3633 3 года назад +2

    You are a good teacher! I love the different marker colors, makes it easier to understand. Thank You!

    • @claytrader
      @claytrader  3 года назад

      Thanks for the feedback!

  • @paintasticpainting
    @paintasticpainting 3 года назад +1

    I just started using the VWAP a couple weeks ago...your video affirms it’s importance! I see many technicals referring to VWAP in general, so it’s opened my eye’s more than ever.

  • @ronaldridgeway9779
    @ronaldridgeway9779 4 года назад +3

    Absolutely brilliant! Thanks, I needed the clarification.

    • @claytrader
      @claytrader  4 года назад

      Thanks Ronald, glad you enjoyed.

  • @mojaeger85
    @mojaeger85 4 года назад +4

    I shamefully never knew about VWAP... This has changed everything. Thank you for the breakdown. Love your content.

  • @DPerk_76
    @DPerk_76 3 года назад

    Day 1 VWAP.
    Simple and digestible.
    Thanks Clay for taking the time to share.

  • @mr.lucasifer
    @mr.lucasifer 4 года назад

    This is the first VWAP video I watched. I have not used it in charting yet, but I feel like this was an excellent introduction. I subscribed before the video was even over. I appreciate your lack of gimmicky bullshit. Very straightforward, informative, and concise. Thanks!

  • @got2go4word
    @got2go4word 4 года назад +38

    As traders, we should always continue to evolve with our trading strategies,well done Clay!

  • @timfassbender
    @timfassbender 4 года назад +11

    First video ive seen on your channel, and i just wanted to let you know that your quality is astonishing! The second camera is extremely refreshing and listening to you speak is a pleasure. You definetely earned a new sub. Looking forward to binge watching your videos.

    • @claytrader
      @claytrader  4 года назад

      Thanks for the feedback and welcome to the channel!

  • @77Shelzi
    @77Shelzi 4 года назад +1

    Thanks Clive I am new to this you answered a lot of my questions this is the 4th Video. I did subscribe. Also you take time to explain things in great detail. Thanks again.

  • @amardk123
    @amardk123 4 года назад +2

    Clay, Thanks for explaining VWAP, I will definitely give it a try.

  • @joekarate9424
    @joekarate9424 4 года назад +3

    Clay, great video man! Your break down is so easy to understand! Thank you.

    • @claytrader
      @claytrader  4 года назад

      Thanks, glad you enjoyed.

    • @dullahlife2188
      @dullahlife2188 4 года назад

      Agree !!! Definitely got my like my like button

  • @perkinscove1640
    @perkinscove1640 3 года назад +29

    Clay, an additional important support line (for long trades) based on VWAP is a band -1.0 SD (Standard Deviation) below VWAP. Some platforms default to VWAP plus a high band at +2.0 SD and a low band at -2.0 SD. And most VWAP videos tell new traders to eliminate the upper and lower bands. That is a mistake, IMO, as they show support and resistance and are helpful in making good entries and exits. That said, I do recommend that the low band be raised from -2.0 SD to -1.0 SD. The reason is that if VWAP itself has a support strength of 4.6, then -1.0 SD has a support strength of 5.7 whereas -2.0 SD has a support strength of only 1.8. What this means is that if the price falls below VWAP it stands a very good chance of bouncing off that -1.0 SD line.
    If your platform allows you to add a lower band below VWAP I suggest you add one at -1.0 SD and watch to see how often that line is the price reversal support area ("bounce"). In my experience, as you can see from my numbers above, it is even stronger than VWAP itself.
    Try it...you may like it.
    Cheers!

    • @claytrader
      @claytrader  3 года назад

      Thanks for the thoughts!

    • @mikebenny3389
      @mikebenny3389 2 года назад +2

      Yes the upper and lower bands help a lot on the 1M chart. Not so much larger daily time frames. IMO

    • @johannesandreasgribfibiger6677
      @johannesandreasgribfibiger6677 Год назад

      Hi! What about the upper band, do you leave that at 2.0 SD or change it to 1.0?
      Also , what are you refering to with the “support strength “ ?
      Thanks

    • @perkinscove1640
      @perkinscove1640 Год назад +2

      @@johannesandreasgribfibiger6677 Johannes, I have recently modified both my support bands to be below VWAP as I am a long only trader and am looking for the lowest price support before making an entry. I have now set the "upper band" to -1.0 SD, and the "lower band" to -1.5 SD which gives me an additional support level to watch.
      "Support strength" indicates to me which level is stronger when related to each other. (VWAP = 4.6, -1.0 SD = 5.7, -1,5 SD = 3.1, and -2.0 SD (which I do not use) = 1.8)
      They only have meaning when compared to each other. For example, if the price falls below VWAP, which has a strength of 4.6, then the next level down is -1.0 which has a stronger support at 5.7. Below that the supports get gradually weaker and reversals are less likely to happen.
      Hope that helps. Cheers!

    • @johannesandreasgribfibiger6677
      @johannesandreasgribfibiger6677 Год назад +1

      @@perkinscove1640 it certainly helps !
      So I’m assuming the -1.0 level has the highest support strength from your observations ?
      Do you look for any price action at these areas or any other confirmation?
      Also, since the comment is pretty old and you’re still using this method , I’m assuming you are still profitable with it?
      Hope it’s not too many questions but I’m very interested in this approach and you seem to have plenty of experience with it!
      Cheers!

  • @gumbywwf83
    @gumbywwf83 3 года назад +1

    I just loaded the VWAP. Following the herd is a smart thing. The herd drives the prices. Thanks for taking the time for teaching me something new.

  • @tuckebarry
    @tuckebarry 3 года назад

    Thanks a lot. And love that you reply to all the comments even with a bunch of these. Hope your channel grows, God bless

  • @shawns735
    @shawns735 4 года назад +3

    Actually one of the first useful things that I found on RUclips to start learning to trade (in addition to your channel of course)... Keep up the great work Clay..

    • @claytrader
      @claytrader  4 года назад +1

      Thanks for the feedback Shawn.

  • @mu9284
    @mu9284 4 года назад +6

    Damn the content on youtube regarding trading is awesome , and this video is like a gem to the whole crown...
    keep the great work going on my friend.....

    • @claytrader
      @claytrader  4 года назад

      Thanks for the kind words

  • @lmbreal6912
    @lmbreal6912 3 года назад +1

    Been hearing vwap alot but your are the only one that made me understand this. Thank you

  • @dlealchicago
    @dlealchicago Год назад

    For someone that just discovered this, you sir have explained it THE BEST ON RUclips! Great video

  • @thesoulengine
    @thesoulengine 4 года назад +6

    Great point on the chain reaction theory Hope everybody uses it that way. We can all Increase the chance to make more profits.

  • @SharpClawsXsharpaws
    @SharpClawsXsharpaws 4 года назад +5

    I've been pretty using it close to a year. VWAP, volume and throwing lines on key support and resistance levels is all I use.

    • @claytrader
      @claytrader  4 года назад +1

      Nice!

    • @rainmanferguson
      @rainmanferguson 3 года назад

      @@claytrader he didnt say he was successful he said it was all he uses so nice might be incorrect lol .... just saying

    • @claytrader
      @claytrader  3 года назад +1

      @@rainmanferguson i'm saying it is "nice" that he uses it... stop overthinking things...

  • @wpb.andres5335
    @wpb.andres5335 3 года назад

    I cannot explain how much i love you, for making this video. Thank you sooooo much.

  • @upone23
    @upone23 4 года назад

    Best breakdown I've seen on RUclips, and I've seen a bunch of videos about VWAP.. Very good way to dumb it down...

  • @petaryordanov1747
    @petaryordanov1747 4 года назад +3

    Very useful video, meaningful explanation of the psychology behind it, I like it. Keep up the good work.

    • @claytrader
      @claytrader  4 года назад

      Thanks for the feedback Petar. Glad it could help out.

  • @princesssophiawise3560
    @princesssophiawise3560 3 года назад +35

    I understand and remember things better when I’m seeing it on a chalkboard. Don’t know why. But... THANK YOU!

    • @claytrader
      @claytrader  3 года назад +2

      I agree with you!

    • @kustomkode
      @kustomkode 3 года назад +1

      I forget it instantly for some reason. But I have found that when I see it on a dry erase board I remember it better.

    • @claytrader
      @claytrader  3 года назад

      @@kustomkode interesting

    • @kustomkode
      @kustomkode 3 года назад

      @@claytrader, crazy isn't it? Lol

    • @claytrader
      @claytrader  3 года назад

      @@kustomkode indeed!

  • @demianstclair3279
    @demianstclair3279 4 года назад

    Yes, Iam using it...now. Its my first and only indikator, besides price ofc. Thanks Clay.

  • @arshia1698
    @arshia1698 3 года назад +2

    Respect to your work and energy man. One of the best coaches out there!

  • @MJP913
    @MJP913 4 года назад +8

    I always learn so much from you. I'm new at day trading and I should have found your channel before losing a few thousand. Wish me luck

    • @claytrader
      @claytrader  4 года назад +1

      Thanks for watching!

    • @Justin-pu5pb
      @Justin-pu5pb 4 года назад

      I am new also, what books have you read to help? And who else do you like to follow?

    • @claytrader
      @claytrader  4 года назад

      @@Justin-pu5pb My thoughts on books claytrader.com/videos/want-to-learn-how-to-trade-dont-read-books-heres-why/

  • @route66readymix45
    @route66readymix45 4 года назад +4

    Talk about the serious stuff!!! Freakin’ love this channel. I just stumbled over this channel, never popped up before. Seen a few and by far, there hasn’t been anyone on RUclips that explains this dissection like Clay. Die hard follower here.
    Newbie to stocks......looking at shorts & options. They seem to be my best fit.
    I have plenty of time to burn and just wanted to learn something new. So far, I’ve slowly made money. However, that’s due to the crash. I’d like to really master some type of plan , as it seems that news also effects different industries.
    Happy Camper , here.

    • @claytrader
      @claytrader  4 года назад +1

      Welcome to the channel! I appreciate the feedback.

    • @Jcestanley
      @Jcestanley 3 года назад

      Same here. I thought I was on my Apple TV clicking on a dif video one night after having several drinks and this guy starts day trading... I haven’t stopped watching him since. This is exactly how I want to trade. I’ll eventually end up subscribing to his chat.

  • @denishasharpe3778
    @denishasharpe3778 3 года назад

    You are such a great teacher ! Love how you break everything down for beginners ! THANK youuuu

  • @ronandemailly5384
    @ronandemailly5384 3 года назад

    FANTASTIC! Awesome, best video out there about the VWAP, finally something that really explains what it is!

  • @samarthpandey8483
    @samarthpandey8483 4 года назад +14

    I'm an Indian trader
    I use VWAP a lot
    Since I'm a Novice, still learning a lot from videos like this
    Thanks a lot Global Gurus ♥

    • @gyanaranjan859
      @gyanaranjan859 4 года назад +1

      👍

    • @claytrader
      @claytrader  4 года назад +2

      Glad you're focused on learning.

    • @brijeshtiwari5493
      @brijeshtiwari5493 4 года назад

      Pandeyji my WhatsApp number we can connect 9223181021

    • @ompatel3901
      @ompatel3901 4 года назад +1

      What you think macd or vwap?

    • @claytrader
      @claytrader  4 года назад +2

      @@ompatel3901 this claytrader.com/videos/top-5-technical-indicators-all-beginner-traders-should-use-getting-started-with-charts/

  • @amsalmeron
    @amsalmeron 4 года назад +3

    The VWAP is awesome in its sheer simplicity, but it's also just the tip of the volume analysis iceberg. I actually rely solely on volume-based indicators, which have the advantage of complementing one another regardless of market conditions, given they're not calculations but merely forms of organizing/displaying volume. My humble suggestion to you, Clay, is that you plot the volume profile of any instrument on your chart and see how clearly they indicate key areas in price - sort of like having several VWAPs in your chart. Big horizontal volume = big commitment = willingness to defend a price level. Great video, best to you!

    • @claytrader
      @claytrader  4 года назад +1

      Thanks for the feedback and thoughts! Much appreciated.

    • @dp-bh5fh
      @dp-bh5fh 2 года назад

      I’m new to trading but I find this post interesting... could you specify some volume based indicators you’d use specifically in conjunction with vwap? Have you learned anything about this relationship over the years?

  • @lohithraghupathi3175
    @lohithraghupathi3175 3 года назад

    The passion in you for putting this out for us, I couldn't not connect to any other content provided like I did to you ... Please keep doing this

  • @sajjadblendz465
    @sajjadblendz465 4 года назад

    Thank you for doing this. You make it nice and clear and it’s easier to learn. Keep doing what you do.

  • @beetdevin4812
    @beetdevin4812 4 года назад +5

    Finally someone explains clearly what VWAP is!!!

    • @claytrader
      @claytrader  4 года назад

      Glad it could help Rolando.

  • @Lucas1araujo32
    @Lucas1araujo32 4 года назад +72

    Another great reason I love the VWAP for day trading is because it stays the same on all intra day time frames. A regular moving average (Lets say 15 SMA) varies on every time frame, because it gathers the average price from the last 15 candles, now if you're using that 15 SMA on a 1min or a 5min chart the moving average is at a completely different place on the chart. This makes using these basic SMAs and EMAs a weaker confirmation than an indicator that is the same across all intra day time frames like the VWAP.

    • @claytrader
      @claytrader  4 года назад +4

      Thanks for the thoughts!

    • @Daniel-dz3ls
      @Daniel-dz3ls 4 года назад

      Indeed

    • @claytrader
      @claytrader  4 года назад

      @@Daniel-dz3ls :-)

    • @cazkeymekam6427
      @cazkeymekam6427 4 года назад

      You can use MA's from different timeframes. If you use a MA from a higher timeframe it actually makes a nice staircase instead of cutting through price all the time.

    • @caseyjones7404
      @caseyjones7404 4 года назад +1

      This is why i chart 4h onto the 15min. Use 16x period multiplier.

  • @zeridiusmagus1676
    @zeridiusmagus1676 2 года назад

    New to trading so, I have been using the VWAP 0 mins. After this break down I will definitely start using this tool. Thank for information.

  • @mariamfk788
    @mariamfk788 4 года назад

    Best explanation ever for the vwap in my opinion ! thank you Clay

  • @williamsmith7221
    @williamsmith7221 4 года назад +3

    Great visual and explanation!

  • @jajajaja266
    @jajajaja266 4 года назад +8

    Once I added this to my scanner. I was seeing 40% and up gains each day .

  • @cebolla7260
    @cebolla7260 Год назад +1

    I love nothing more than learning from someone who knows more than me but even more than that is learning from someone who is physically fit. You look good in that shirt and you're a very enthusiastic, keep it up my guy.

    • @claytrader
      @claytrader  Год назад +1

      Thanks for the kind words and I'm glad you enjoyed!

  • @elenasunshine
    @elenasunshine 3 года назад +2

    Thank you for sharing this information. I'm new to trading and was not aware of the VWAP, which sounds a quite crucial tactic when playing the game.

  • @qualityjohnmartinez8364
    @qualityjohnmartinez8364 4 года назад +21

    I'm still a beginner, and this is awesome clay.I love these types of videos since i am still learning but my goal is to follow your philosophy and someday be able to say $500 a day keeps the day job away.Please keep making more of these videos .

    • @claytrader
      @claytrader  4 года назад +1

      Thanks for watching

    • @off-gridhillbillystyle3735
      @off-gridhillbillystyle3735 4 года назад +1

      How is your trading now?

    • @claytrader
      @claytrader  4 года назад +1

      @@off-gridhillbillystyle3735 he's currently going through my training program here claytrader.com/takecontrol/

    • @qualityjohnmartinez8364
      @qualityjohnmartinez8364 4 года назад +2

      @@off-gridhillbillystyle3735 to be honest i lost my initial $150 investment and now i'm investing in my training with the trading freedom pathway,it's definitely worth it.

    • @off-gridhillbillystyle3735
      @off-gridhillbillystyle3735 4 года назад +2

      @@qualityjohnmartinez8364 I took a couple losses in the last 2 weeks but gained them back.
      Now watching the world drop out again lol. Just ride the wave it'll eventually come back

  • @ChrisSchenk
    @ChrisSchenk 4 года назад +15

    Good video Clay!! I use the VWAP in my trading and I use the RSI to help with entry and exits to my trades. I try to keep things as simple as possible so anyone including myself can use it. :)

  • @AC-vp4ss
    @AC-vp4ss 3 года назад

    Video not only colorful, but very helpful. Thank you and great job breaking the VWAP down.

  • @amitjha573
    @amitjha573 4 года назад +3

    Thank you Sir, for this informative video, looking forward to checkout your other videos ..... Thanks again, Respect from India 🇮🇳🇮🇳🇮🇳.....

  • @kirkblackshear
    @kirkblackshear 4 года назад +3

    Thanks for the great video! Now I believe the market moves just to drive up the VWAP to a certain price. Once it levels out, the volatility fades or the prices stay far above it

  • @isaacabekah7136
    @isaacabekah7136 3 года назад

    I'm just beginning, but without a doubt, you're a great teacher.

  • @obieWanmotivation
    @obieWanmotivation 4 года назад

    Finally someone broke this thing down in a way that makes common sense. God bless you Clay!

  • @jaydmhearne
    @jaydmhearne 4 года назад +4

    This is great, really well explained. Thanks Clay 🤙🤙🤙

  • @jamesnewcomb6065
    @jamesnewcomb6065 4 года назад +4

    Thank you for explaining that to me like I am 6 years old. I finally understand what it is. Thanks subbing now.

  • @dollenamafi99
    @dollenamafi99 4 года назад

    I'm in the learning phase, and watching your video has given me a better understanding of reading chart patterns. Thank you for sharing....

  • @waynelangshaw7889
    @waynelangshaw7889 3 года назад +1

    So glad i found your VWAP vid...its helped me go from a bad compulsive trader to a trader that makes good profit..thanks heaps !

  • @HAJJ101
    @HAJJ101 3 года назад +39

    Please keep doing chalk demonstrations, this is old school and works so well!! It also works so well because of how you interpret things, got my subscribe!

    • @claytrader
      @claytrader  3 года назад +1

      welcome to the channel!

  • @NIO777
    @NIO777 4 года назад +44

    I am a VWAP virgin Clay.. Lets make some great trades.. Ya Thank You for this great video.

    • @claytrader
      @claytrader  4 года назад +2

      You a member of the community?

    • @kuverra8715
      @kuverra8715 4 года назад

      @@claytrader nice xplanation! what u think of using a set fibonnaci of vwma,s instead of ema,s?

    • @claytrader
      @claytrader  4 года назад

      @@kuverra8715 Kuver, if you want to "talk stocks/trading in general", that's the entire idea behind my private community here claytrader.com/team which you are welcomed to join.

    • @McKannon
      @McKannon 4 года назад +7

      @@kuverra8715 you can also join lots of other FREE communities that dont try to take advantage of new traders. Do your research first for free. Then, and only then, should you decide if youd like to dump your money into someone else's pockets.

  • @charlesrobertson1860
    @charlesrobertson1860 4 года назад

    I thought I understood vwap but your psychological examples helped me understand it even more. Thanks!

  • @jenialherdianto292
    @jenialherdianto292 3 года назад

    I love the way you teach. Can't skip every second. Very enthusiastic, positif energi..

  • @enhancedaquatics
    @enhancedaquatics 4 года назад +9

    I love that you shared this. I started using it after reading Andrew Aziz' book, Advanced techniques in day trading. I think it's critical to view the charts from long time frame to short time frame with having VWAP set up in all of them. It makes it much easier to follow the trend. Love the content Clay.

    • @claytrader
      @claytrader  4 года назад +1

      Cheers and thanks for the thoughts.

    • @sonorajosh6636
      @sonorajosh6636 4 года назад

      I wondered why Clay had never mentioned it after reading both of Andrew's books, but thought it was just a matter of choice

    • @claytrader
      @claytrader  4 года назад +3

      Now you know why... lol....

    • @Fr3shProduce
      @Fr3shProduce 4 года назад

      @@claytrader what is your opinion of the book though? I have not read it yet.

    • @claytrader
      @claytrader  4 года назад +1

      Never read it. I don't believe in "trading books".

  • @kevinm4462
    @kevinm4462 4 года назад +8

    I've been using the VWAP for a long time. I'm a momentum trader and I have a long bias if above VWAP and short bias if below VWAP because I trade with the trend. I know this is directly opposite of what you explained but everybody looks at the "inkblot test" (charts) differently and an image appears that makes sense to them. The only thing that matters is if the image that appears makes you a consistent profitable trader. Another great thing about the VWAP is you can be rest assured knowing every trader using VWAP, no matter what time frame, is going to be looking at the exact same VWAP price as you (give or take a cent or two).

    • @claytrader
      @claytrader  4 года назад

      Thanks for the thoughts Kevin.

    • @kate682uk
      @kate682uk 4 года назад

      Kevin M where do you start your vwap from and do you use it to trade fx, indices, metals, oil etc, or just stocks?

  • @eliseintheattic9697
    @eliseintheattic9697 3 года назад

    Very understandable and makes sense. IRL averages always take into consideration recurring numbers so now I see why this indicator is important. Thanks!

  • @notrealpalmer
    @notrealpalmer 3 года назад

    Lol awesome video I just recently started using the VWAP for my day trading and it’s awesome to see it broken down like this. Thank you.

  • @powerfulknowledge1172
    @powerfulknowledge1172 3 года назад +10

    Clay, I've been using it since I started, without knowing it was a common rule. I'm pretty new on this about trading, but I'm trying to observe well the numbers day after day.

    • @claytrader
      @claytrader  3 года назад +1

      Good job!

    • @vitsin87
      @vitsin87 2 года назад

      You still winning with this indicator?

  • @NoName-mf1un
    @NoName-mf1un 4 года назад +40

    ''You want a good price... D U H'' made me laugh really hard and idk.

  • @francescosisto7131
    @francescosisto7131 4 года назад

    Brilliant! i can't wait to go try the VWAP! Thank you man!

  • @coppersulphate002
    @coppersulphate002 4 года назад

    It is very satisfying to watch your videos! I will continue to support your channel! You are truly amazing !!

  • @TyKOmain
    @TyKOmain 4 года назад +7

    VWAP is one of the only indicators on my chart.

    • @claytrader
      @claytrader  4 года назад

      Cheers to that.

    • @gcult005
      @gcult005 4 года назад

      AND WHAT? I DONT GIVE A SHIT U use IT duMASS.

    • @TyKOmain
      @TyKOmain 4 года назад +1

      gaurav bhat
      The list goes on there are literally thousands of indicators that people believe give them an edge.
      I prefer a clean chart and only use simple moving averages and VWAP

  • @RobertCooneyOnline
    @RobertCooneyOnline 4 года назад +11

    "I've been using it for 10 years Clay. Welcome to the party"
    Seriously, welcome to the party. VWAP is great as a reference point.

    • @claytrader
      @claytrader  4 года назад +1

      Thanks for the welcome ;-)

    • @mehulsan77
      @mehulsan77 4 года назад

      Robert C yo bro

    • @claytrader
      @claytrader  4 года назад

      @@mehulsan77 yo

    • @superkittybtc
      @superkittybtc 4 года назад

      @@claytrader hey check out this person on tradingview, superkitty uses vwap all the time in a very interesting way

    • @claytrader
      @claytrader  4 года назад +1

      @@superkittybtc are YOU superkitty? lol

  • @reygonzalez7483
    @reygonzalez7483 3 года назад

    Thanks Clay! Very valuable information and very well explained. This my second video i watch of urs and let me tell u. I think I'm about to binge watch alot of ur videos. Thanks again.

  • @iamblacksheep1
    @iamblacksheep1 3 года назад

    Awesome stuff. I"ve been only trading for 6 months and have just been stubborned by not paying that much attention. I found yours and others videos to learn how to use it. I appreciate you taking the time to explain with real world situations and less technical jargon as well.

  • @lukeschaeffer2551
    @lukeschaeffer2551 4 года назад +3

    Thanks for the video, Clay, honestly. If I may suggest, make a condensed version of your lessons, as well. While I'm confident there are people who benefit from the small talk, there are also people who will tune into more of your vids, if more to the point. All the best.

    • @claytrader
      @claytrader  4 года назад

      If I may offer you some feedback, you should probably stay away from the markets. Your apparent lack of patience is going to cause you lots and lots of frustration and lost money.

    • @lukeschaeffer2551
      @lukeschaeffer2551 4 года назад +4

      @@claytrader Super defensive - Check. Ability to receive sincere feed back - X.

    • @claytrader
      @claytrader  4 года назад +2

      @@lukeschaeffer2551 What? I'm offering you advice. Just because you don't like/agree with the advice doesn't mean I'm defensive.

    • @yxcvmk
      @yxcvmk Год назад

      @@claytrader Years later: Interesting short conversation. What I've hared:
      1. "Claytrader: You could improve your channel and views by making shorter clips where the information is condensed.
      2. "Luke: If people have such a short attention span, they should not watch watch my Videos, because with this lack of patience they will very likely be slaughtered in the markets"
      I think both numbers above are valid, and both come from a different perspective. One is about getting more traction on YT, the other one about helping potential traders and don't care about YT algorithm too much.
      Still here I am 2 years later. 1/2 Million subscribers is substantial. If the trading is also successful, which I don't know, this would a well deserved Jackpot :-)

    • @claytrader
      @claytrader  Год назад

      @@yxcvmk thanks for weighing in 🙂

  • @roflcopter4388
    @roflcopter4388 3 года назад +128

    "When enough people believe it to be true then it's going to work." GME 2021 lolol

    • @claytrader
      @claytrader  3 года назад +2

      indeed!

    • @sfkingalpha
      @sfkingalpha 3 года назад +1

      holding and waiting for moon landing

    • @claytrader
      @claytrader  3 года назад +11

      @@sfkingalpha is the moon in the toilet?

    • @krishnanshanmuganathan5416
      @krishnanshanmuganathan5416 3 года назад

      Exactly true!!!

    • @thomasdivan2537
      @thomasdivan2537 2 года назад

      Great explanation ClayTrader ! However I have a question for you regarding the VWAP indicator. Hope you are willing to share your understanding to me.
      I got a little bit of confusion with your statement that buying the stock below the VWAP (the majority of the buyer) is considered to be good and buying above the VWAP is considered to be bad.
      My assumption is when there are institutions or big players who buy the stock at $20 with such a huge volume, they will have an average buying price within $20 price level. Moreover, in order for them to be profitable they will need to maintain the price above $20 which is their average buying price. In this case, if the price fails to maintain at $20 and breaks below their averahe buying price and VWAP, this will be unfavourable for the majority of buyers and eventually they might consider to sell their positions as it's unprofitable. This potentially puts a further sell off causing the price to drop further from the VWAP level and making it to be unreasonable to buy below the VWAP. What do you think about this?
      Thanks in advance ! 🙏

  • @simonmwangi142
    @simonmwangi142 4 года назад

    I'm a brand new beginner, listening to your Vwap explanation, I'm sold, I will try to use it, never used it before. Thanks Clay.

    • @claytrader
      @claytrader  4 года назад

      Thanks for watching Simon!

  • @jakubvalenta5403
    @jakubvalenta5403 4 года назад

    This is the best video about VWAP. Perfect job!

  • @johnkobbie3835
    @johnkobbie3835 4 года назад +7

    Makes me want to go out and buy a chalkboard and some funky markers that writes on chalkboards.

  • @tissot0325
    @tissot0325 4 года назад +4

    I’d still like to ask if day traders make more sense than buying stocks and holding for a time what do you think

    • @claytrader
      @claytrader  4 года назад +10

      I believe in diversification, which is why I do both.

    • @claytrader
      @claytrader  4 года назад

      @Andrew Johnson thanks for the thoughts Andrew

    • @sanekabc
      @sanekabc 4 года назад +1

      Ask Warren Buffet

    • @tissot0325
      @tissot0325 4 года назад

      @@sanekabc if you ask Warren buffet, he holds stocks for a long time

    • @brandonyankees1
      @brandonyankees1 4 года назад

      Day trade and turn those profits into long turn investments

  • @rqztaz
    @rqztaz 4 года назад

    Clay I wanna thank you for getting me to finally understand vwap

  • @aka__maza2574
    @aka__maza2574 3 года назад

    Second vid i watch from you. So far subscribe. Love it how you explain how hedge funds use VWAP to buy or sale next to it. With a happy customer😄. Looking forward to see you trade live tomorrow.

  • @Thsiscool
    @Thsiscool 3 года назад +3

    "Now from the top, make it drop..." - When putting the V in the WAP...

  • @DanielFlores-ug1tk
    @DanielFlores-ug1tk 3 года назад +15

    “Tend to Rise back down”😭 8:15

  • @aakker
    @aakker 3 года назад

    Thank you sir. Very kind of you to pass on this kind of knowledge. Great channel too!

  • @daifuruta581
    @daifuruta581 4 года назад

    This is very useful to me and VWAP which I didn't know the name but after you explained on video, I know that is happening all time everyday. Thank you I took note.

  • @magnum7024
    @magnum7024 4 года назад +3

    Oh dear...🤦‍♂️ From the looks of these comments... I have a feeling that some didn't get what you were trying to convey. Just imagine how many people are about to buy below,short above,and buy the bounce off of the VWAP. For those who do, hopefully they itleast are looking at multiple timeframes to reduce the pain.

    • @claytrader
      @claytrader  4 года назад +2

      To each their own... I do agree with your overall point though.... there is definitely MORE to trading wisely then simply the VWAP.