OTM Trading Como Sistema
How we use OTM TradingExplicación Indicadores
OTM Delta SwingOTM Delta MicroOTM Delta CumulativeOTM Delta BarOTM Volumne ProfileOTM VWAPOTM Graphic Bar TimerEstrategias
MomentumReversals¿Listo? Revisa esto para comenzar
Frequently Asked QuestionsI pay and then what?
OTM VWAP
VWAP is a very useful indicator in trading and its calculation is quite simple. VWAP stands for 'Volume Weighted Average Price' and it is like a moving average that is constructed with the trading volume of the market. This indicator has several lines that can serve as a reference for our trades:
1. VWAP: This is the 'Central' or main VWAP. If the price is above it, we can take it as support and buy when the price reaches near this line. If the price is below it, we will take it as a resistance.
2. VWAP deviation 1: The VWAP has lines called deviations that replicate the behavior of the central line at a certain distance (standard deviation), we have them above and below, this is the lower deviation #1.
3. VWAP deviation 2: As the price advances with a clear direction, it is increasingly expanding and possibly on retracements it may not reach the central VWAP. Here, the deviations can serve as a reference for the location of our trades.
4. VWAP deviation 3: Once we observe that the price has reached deviation #3 of the VWAP, it means that the price is very extended and it is possible that very deep retracements or changes of direction will come later. We can use this deviation as an exit point for our trades.
