VWAP Buy for Trending days

DOW was trending higher, +50 points up after a brief deline.

MACD histogram (momentum) signals also went up suddenly, normally it signals a change in direction. This time, it is an UP move.

Thus it would call for going LONG in stocks. $INDU also gave LONG signal.

The stock with BUY signal was KLAC. As it was a trending day buy, VWAP BUY should be used.

VWAP Buy features

• Green bars + Green ST + below VWAP in 5min chart
• Above SuperTrend in 30min chart

5-min chart

Buy and Sell signals are clearly marked with arrows.

30min chart

Note that SuperTrend was switched at 3:00pm. It allowed for LONG entries in 5min chart.

SuperTrend switch in 30 min charts are very important signals.

Mean reversion

AMGN was so technically efficient today. Long Entry (green bars) in the early part, then broke down below SuperTrend and Short Entry ( red bars ).

Lower MPD band to VWAP

Go Long when large volume picked up while prices remained below lower MPD band. Earlier penetrations didn't have large volume.

Target is at VWAP. 50 cent profits for less than one hour's trading.

Breakout

This is Ebay against $INDU on 17th August. Ebay was going higher and higher and closed up for more than 6%.

Ebay had been a strong stock prior to this. The breakout happened late 16th. It has to be an overnight trade.

How to join the rally on the 17th?

Entry

Take the long trade whenever $INDU completed a downturn and up again.

Note the followings:

• $INDU was never OS(oversold) in multi-MACCI settings
• Ebay's rally was followed through with high volumes and Ebay was never OB(overbought) in the context of the MPD, in otherwords, Ebay never went outside the upper MPD band