AVWAP: #AskGyani with Deepak Thakran

Anchored VWAP or AVWAP

AVWAP or Anchored Volume Weighted Average Price indicator was first developed by Brian Shannon at Alphatrends.net

AVWAP’s primary usage is to determine important support and resistance levels.

Anchored VWAP is applied to a specific bar, and from that point calculates the cumulative value and volume to determine the weighted average price. 

"Alphatrends' Anchored VWAP is the perfect combination of Price, Volume and Time, I would feel like I am trading blind without it."
Brian Shannon
"Trade Gyani"

Webinar Presentation

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Webinar Q&A Transcript

I am a IT engineer by qualification and a Trader who trades using candlestick based technical analysis with a combination of Behavioural finance. I run a blog on www.Indianstockss.com and is active on Twitter from id @indian_stockss

Like everyone else my aim is also  not to lose much and protect capital and follow a trading system which focus on what market is doing. My analysis is mixed with the information generated from Markets and behaviour of market during the rise and fall.

– Deepak Thakran


Question:

Should I invest in Hatsun Agro Products Ltd ?

Answer:

565 is lower end for Hatson Agro and if 722 level will break then, it is expected to lead upto 820 level.

Question:

What’s the long term view on ICICI bank, REC LTD and BalrampurChini?

Answer:

For ICICI bank- don’t buy at resistance-380(recent), and recent support is around 352-340 and expect around 430 in next year

For REC LTD- from 143 it can reach upto 165-180 level

For BalrampurChini – initially it can dip to 115-120 and upside it can hit 175 depending upon the commodity itself.

Question:

I have one question regarding Daawat stock. Please tell us about expected movement in upcoming 6 months.

Answer:

If prices will go above Rs. 47 then we can expect upto Rs. 62 in next 6 months.

Question:

I want to know about this current market volatility duration.

Answer:

Market volatility never end and current market is not so much volatile as per vix its 16 now. It can be more volatile during elections Vix can reach around 26.

Question:

Whats ur Favorite trade using #AVWAP?

Answer:

Larsen Turbo, DivisLAB in which gave better results.

Question:

How is exit/SL determined using #AVWAP ?

Answer:

AVWAP shows perspective for buyer and seller according to that we can decide exit/SL.

Question:

What makes #AVWAP any different from other strategies? Any resemblance to other strategies?

Answer:

AVWAP is only similar to VWAP except starting point.

Question:

What is #LIQUIDBEES and what’s the point in investing in this?

Answer:

Can put idle funds, for approx return upto 6.5% per year.

Question:

Which sector looks good for now , in recent market scenarios?

Answer:

Follow and track TradeGyani portfolios

Question:

Best resources to learn technical analysis?

Answer:

Google more about technical analysis, Follow people on Twitter, keep an eye on techniques used by others, watch YouTube videos etc.

Question:

what would be the outlook of #PRAJIND , it has jumped almost 60% in last 6 months , can i buy on this levels?

Answer:

Try to buy at sub 140 level

Question:

What do you think about #WIPRO , after the bonus allotment , can i make buy more on these levels ?

Answer:

Avoid Wipro for now. This stock will go in consolidation now.

Question:

Whats you view on telecom sector , after the 5G announcements by Jio?

Answer:

Look for 5G service providers to the telecom sector not telecom stocks itself. So technical support, optical fibre, IT  sector which has that contract are good.

Question:

Which stock are good in pharma sector for next 1 year?

Question:

How to manage risk while using #AVWAP ? Is risk management any different w.r.t other strategies?

Answer:

Yes, risk managment is different. AVWAP does not give trades it gives only perspective for buying / selling.

Question:

Tell me about Infy stock movement.

Answer:

Infy may slide to 697 level.

Question:

Tell me about Raymond stock

Answer:

It can also slide 780 downside or upside 884 level.(price start moving down drom 21st Dec, price tested up 21st Feb then seller lost its control, so 761 will act as a support)

Question:

Tell me about Sunpharma stock

Answer:

Can slide down 443 or upside 460-490 level.

Question:

Tell me about Ambuja Cement stock

Answer:

Cement stocks are good as Rs 40 hike per bag recently. It can leverage from 230 to 245.

Question:

Whether normal moveing averages are better or AVWAP?

Answer:

Normal moving averages conside only price and time into account. But AVWAP consider starting point, volume also.

Question:

Which point is more reliable to draw AVWAP – gap up, gap down, swing up, swing down?

Answer:

Swing up and swing down happen on daily basis but gap down/up may not happen on daily basis. Also, will suggest AVWAP on swing up/down.

Question:

Tell me about ZEEL at 380-385 level

Answer:

At this level, swing low value is 389, swing high value is 472

Question:

How much minimum capital reuired for traing using AVWAP

Answer:

AVWAP gives perspective instead of investment amount.

Question:

Can use year high and year low in AVWAP?

Answer:

yes, if it breached many times.

Question:

What about idbi share? Why it go loss in Feb?

Answer:

After price 61 level IDBI price come to originality.

Question:

What is benifit shifting starting point of AVWAP?

Answer:

Can not shift starting point in VWAP,  but we can do this in AVWAP.

Question:

Any stock where AVWAP work fabulously?

Answer:

On every stock we can use AVWAP.

Question:

Tell me about ITC stock

Answer:

Buyer average is lower to 278 and price has ran up. AVWAP is  not saying anything here. Suggest to plot AVWAP at 297 level.

Question:

Do you use only AVWAP?

Answer:

No. we can use other techniques also.

Question:

Tell me about Mindtree stock

Answer:

Seller is not able to do so much here. Wait till KKR deal and promoter deal then it may clear about this stock.

Question:

Tell me about GAIL stock

Answer:

331 is buyer average(support), for seller we can skip this part.

Question:

Can AVWAP  be drawn on Zerodha?

Answer:

It’s not on Zerodha.

Question:

What’s your view on Jet Airways?

Answer:

Not suggested

Question:

View on Exide?

Answer:

For Exide: Resistance- 244 and Support- 230

Question:

What about Kotak Mahindra bank ?

Answer:

Volume has came down from 22nd Feb, Seller is taking the control now. Once it crosses 1250 then it will go high(Gap Fill trade).

Question:

Tell me about Bajaj Finance stock

Answer:

No seller AVWAP, only buyer can be plotted as it is going higher.

Question:

If AVWAP can be used for trade swings during day high/day low?   

Answer:

Yes

Question:

How to plot chart for AVWAP?

Answer:

Plot AVWAP by plotting twice once for buy and once for sell(both).

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