A Very Simple Momentum Day Trading Strategy

A Very Simple Momentum Day Trading Strategy | The 9 EMA Crossover VWAP

Рет қаралды 107,854

3 жыл бұрын

Whenever a stock gaps up over the previous day's downtrend, you can use the 9 EMA indicator. Wait for the Exponential Moving Average to catch up to price and cross over VWAP on the 3-minute timeframe.
I recorded this video after the market closed on Monday, October 5, 2020 but didn't get a chance to edit and publish until Sunday, however, it's a timeless strategy and this is just a case study of it in action.
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#DayTrading #StockTrading #vwapstrategy
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FTC: This video is not sponsored.
DISCLAIMER: I am not a certified financial advisor and nothing in this video or text is an advertisement or recommendation to buy or sell any financial instrument. This video is for educational purposes only.

Пікірлер: 150

@TradingLitt 3 жыл бұрын

I recorded this video after the market closed on Monday, but didn't get a chance to edit it. However, it's a timeless strategy and this is just a case study of it in action! What do you guys think, do you want to see more trading strategies such as this one?

@fardeenkhodabuccus5082 3 жыл бұрын

Hi great stuff Thanks does it work for forex also

@selinagooglethestvekstrate8102 3 жыл бұрын

Very educative tutorial with well detailed information I appreciate, *The Semyon Tchernenko Strategy* was the only way i was able to get results. You can Google it

@carlhart9701 3 жыл бұрын

Hi you still answer questions here

@zaacdavis6657 3 жыл бұрын

Love it, So clear. Just shows you always have to hedge and be open to see the other side.

@eddyvideostar 2 жыл бұрын

Dear Litt: Education is always beautiful and much appreciated. However, in reality, this will not work all of the time, as no "perfect" setup will.

@glennt8687 3 жыл бұрын

I've been using the VWAP only but with the addition of the 9 EMA, it adds confirmation to the entry point. Thanks for taking the time to provide this video.

@TradingLitt 3 жыл бұрын

No problem! Happy this helps.

@latinboi2794 3 жыл бұрын

Thank you for the 3 min candle I’ve been using the 5min gonna try 3

@themagpie_1 2 жыл бұрын

@@latinboi2794 use both for better analysis

@eddyvideostar 2 жыл бұрын

@@latinboi2794 Adopt *one* for your style of trading. Stick to a system and a plan. Do not waver.

@Heart4KidsNonProfit 2 жыл бұрын

You are a gifted generous teacher. I really appreciate you and the Gold nuggets you shared. I am a daytrader and don't like to go to bed with open options. Ready to try this.

@lanreoshisami8934 3 жыл бұрын

Trading lit, this video of yours was really good. I never taught that 3 min time frame was good. Thanks very much player.

@arkinspired4386 3 жыл бұрын

Wow! The way you explained and broke it down. Thank you so much!!!! This content is very much appreciated

@TradingLitt 3 жыл бұрын

glad I could help!

@timothytaylor3510 3 ай бұрын

Love using the 9 ema and VWAP cross myself. This video was really well done and explained !!!

@endysimplice3157 2 жыл бұрын

One of the best VWAP videos I’ve ever seen

@danomack 2 жыл бұрын

First time watcher, nice video! A strategy I've traded before. You break it down very well. Thank you

@MarcoFinances 2 жыл бұрын

How do you like it?

@lanreoshisami8934 Жыл бұрын

I use this EMA and VWAP on forex trading and it works great too. My man litt, you’re the real trading litt. Thx very much

@ulrichnguelefack464 3 жыл бұрын

this is amazing bro. thanks so much. i have heard about the strategy months ago but i never see how it works because i am using the 1 min time frame. great Video. please we need more videos like this.

@TradingLitt 3 жыл бұрын

Thanks!

@nicolehustles 2 жыл бұрын

That fib trick on the opening candle is 🔥🔥🔥🔥🔥

@earlyamtrader6353 2 жыл бұрын

Excellent video. Loving all your content.

@philmaltese4779 4 ай бұрын

You changed my LIFE! Thank you 🙏

@whatsvaga 3 жыл бұрын

BRO YOU ARAE GOD. This makes so much sense and I've been looking for something like this to tighten up!!!!!

@TradingLitt 3 жыл бұрын

Haha Thanks! You'll probably love the video I just released as went in-depth on how you can even improve on this strategy.

@TheZeroPhase 4 ай бұрын

On which video are you refering to @@TradingLitt

@earlesurfs 2 жыл бұрын

I like the VWAP bounce (support) then above 9ema to go long and VWAP bounce (rejection) then below the 9ema to go short

@Izaiah333 2 ай бұрын

That’s my favorite with structure- Zones- Retracements- Fibs- 9ema & Vwap .. I’m 77% on target 🎯 Tightening up but it’s the best

@okayman2057 3 жыл бұрын

we need more analysis and breakdown like this!!! cheers from Canada.

@TradingLitt 3 жыл бұрын

thanks! more will be coming :)

@bobbybushay185 3 жыл бұрын

This is top knowledge right here fam just subscribed , Stay blessed fam

@TradingLitt 3 жыл бұрын

thanks!

@benjaminjordan Жыл бұрын

Great teacher. Keep these coming please.

@IndigenousPathways 2 жыл бұрын

This is awesome. Thanks so much for sharing!

@marketwizard1977 2 жыл бұрын

Great content…More videos like this please

@NOVNIGHTS Жыл бұрын

great video. simple and straight to the point.

@drcdw 8 ай бұрын

I’m definitely looking forward to using this strategy

@robertcameron4288 3 жыл бұрын

yeah i notice once u get a confirmation candles on VWAP, often times there are red selling candles that follow with lower volume, these are pull back candles or aka the pull back range that has low volume. Following this there is a contiuation and follow through on the uptrend, as we then see the EMA then crossing over the VWAP.

@jackvucreative 3 жыл бұрын

Great stuff and we’ll explained. Thank you 🙏🏽

@TradingLitt 3 жыл бұрын

thank you!

@icculas4444 2 жыл бұрын

Love the playbook Videos, thanks

@vp8921 3 жыл бұрын

SUBSCROIBED dude you explain things so well. Thank you. Hope your green days keep coming man.

@TradingLitt 3 жыл бұрын

Thanks for subscribing! And hope your green days keep coming too!

@aliasvadi7604 3 жыл бұрын

Thanks. Great content. I am new to day trading and use ToS too. I now know that when EMA crosses VWAP (going up) there is potential for good entry to go long, and probably the reverse is good for short positions. Could you explain the impact when VWPA crosses EMA in either direction. I appreciate it.

@DarrylHebbes 3 жыл бұрын

one of the better trading channels on KZfaq

@TradingLitt 3 жыл бұрын

Thank you!

@iCodeForBananas 2 жыл бұрын

Played this strategy this morning like three or four times with easy 10% wins off SPY. Gonna keep going deeper on this.

@IndigenousPathways 2 жыл бұрын

Yes please share more trading strategies for beginners!

@washboardjim 3 жыл бұрын

AS I am a novice trader, This guy is a good follow

@seanseedharie668 3 жыл бұрын

This video is amazing. Thank you

@TradingLitt 3 жыл бұрын

glad you liked it!

@ehsanulbarihome 2 жыл бұрын

Very helpful...please post more strategy based video 🙏🙏🙏👍👍👍👍

@JamesWilliams-qn5cq Жыл бұрын

Gr8 Stuff. Thx a Ton for the Post

@pappu2405 2 жыл бұрын

Thanks for sharing this video.

@merneen5917 2 жыл бұрын

Thanks for this♥️

@sureshkrishnan2753 3 жыл бұрын

Hi Trading Litt, Thanks for your video very useful for us, I'm from india, is it applicable for NSA india stock market ? Please let me know setting in Trading view site . EMA 9 Source ( Close, open, hcl3,4) which option should i select same like VMAP source information. it is very useful for me. Please help me

@SD-zx1uh 3 жыл бұрын

More VWAP videos please and thank you!!

@TradingLitt 3 жыл бұрын

Will try to put more of these out!

@wooinvestments2339 2 жыл бұрын

Good stuff bro

@governorross5785 3 жыл бұрын

Magnificent video

@TradingLitt 3 жыл бұрын

Thank you!

@DopeItzTheeOne 2 жыл бұрын

Definitely my favorite trading Strategy ever since switching to it I’ve been winning most of my trades even the ones I lose it’s only a small lost. I use the one minute myself.

@Hello-fx4qr 2 жыл бұрын

For shorting, the 9 EMA would have to crossbelow VWAP, right? Thanks!

@lilxango9049 2 жыл бұрын

@@Hello-fx4qr yep

@thekey44 Жыл бұрын

hey elroy are you still using this strategy? and are you still on the 1minute timeframe? whats your fav stocks to use with this? thanks so much for sharing! :)

@saravanarajm5330 Жыл бұрын

I just invented today after two years of market experience…The back test results was around 85% success ratio..as you said few days it ends with losses but it depends on how you act and revert immediately considering you know also price actions, s/r levels, candlestick indications etc.. only thing little changes required for different markets. For me i found the strategy for Indian market. Hoping for the new beginning from tomorrow.

@theeB24p 2 жыл бұрын

what's the set up used for vwap and 9ema is it just the default settings when adding these indicators?

@kapitalk5062 3 жыл бұрын

I enjoyed your video. You mentioned you know some great strategies on the 1min. Could you please make a video teaching am some of those? I'm very interested. I would like to try the 3min as well. What's the difference with having premarket on and off the chart?

@TradingLitt 3 жыл бұрын

thank you! this strategy is very similar on the 1 min, I just prefer the 3 minute as you won't get as many crosses. having premarket off makes VWAP not calculate pre-market volume and also changes where your ema will plot.

@jausmy96 3 жыл бұрын

I've been using a setup extremely similar to this on $APPL $MSFT $BA $AMD options. The main differences are that I use the 5 min candles, I include PM data, and I use the pivot point indicator for my strike price and main price target. Large caps tend to respect pivot points, and it's a leading indicator so I have my price targets set in advance.

@TradingLitt 3 жыл бұрын

That's awesome! Pivot point from previous days are definitely key. You look for the same EMA VWAP cross on the 5 minute?

@jausmy96 3 жыл бұрын

@@TradingLitt yea. I use both the 3 minute chart and the 5 min. The 3 min is without premarket data, while the 5 minutes is with PM data. I wait for the PA to pull back to the 9 EMA and a fib level or a pivot point indicator level then bounce before I get in. I watched the anchored vwap video and have added that as well to my charts. Looking forward to your future videos.

@Jeff-xy7fv 2 жыл бұрын

@@jausmy96 By "pivot point indicator", do you mean a support/resistance level where the stock has reversed in recent days?

@metalmandible6808 Жыл бұрын

How do you find or plot pivot points on tos?

@mariomelian4421 2 жыл бұрын

great video

@brianlaforge9872 3 жыл бұрын

nice video bro. thank you

@TradingLitt 3 жыл бұрын

thanks man!

@anirudhsays1534 2 жыл бұрын

What would we do in the scenario where vwap crosses ema9 but goes back and forth with out price increasing way too high

@fidesedquivide3486 2 жыл бұрын

Option duration, would you please talk about it, pros v cons. 45 days out? 65 days out? How far OTM to buy for best outcomes? Thanks.

@Revoswathead 3 жыл бұрын

Great videos

@sanketsaharkars Жыл бұрын

Hellow Sir, I don't see the code or tosscript for anchored vwap anywhere. Can you please post the link. Thank you

@japantrader4529 Жыл бұрын

Hello what Vwap Value are you setting with the 9Ema?

@PaulSmith-rp2mw 2 жыл бұрын

Bro, what is the logic being not using pre market data on the 3min chart when using the crossover and fib levels?

@johannesfelsch5103 2 жыл бұрын

Have you ever tried the cross over ema 12/26? Is it too slow for your trading style?

@itsdeeptrading5339 2 жыл бұрын

Great 👍

@pappu2405 2 жыл бұрын

Thanks for sharing this very good info. so can we say that if 9 EMA cross above vwap its a BUY and SELL otherwise ? pl advise.

@TradingLitt 2 жыл бұрын

Yes, but you'll want to know the bigger picture context of what happening. For example, in this video I talked about the stocks down-trending then gaping up-that's what increases the odds of it working. If you're looking for short setups then you'll want a stock that's been up-trending then gaps down.

@samoyedkiyo 6 ай бұрын

can it be used in forex? because I learned about forec in the nfc community.

@Hello-fx4qr 2 жыл бұрын

For shorting, the 9 EMA would have to crossbelow VWAP, right? Thanks! Great Vid!

@mocow246 2 жыл бұрын

Right

@hoyin324 Жыл бұрын

so either one cross another is a signal for buy sell ？

@rahulra8618 3 жыл бұрын

Hi thanks for the video. This is a nice strategy. How would you scan for these stocks? Unless one can scan for these and keep in a watchlist it becomes impossible to find the setups in real time. Please share what you look for in the stocks/instruments before the setup occurs? Thank you

@TradingLitt 3 жыл бұрын

Hey Rahul, I look at the same 14-20 stocks everyday and my watchlist never really changes. I never really liked scanning for stocks as it was too time consuming for me and I try to only trade the companies I know. I focus on FAANG + Microsoft and TSLA for example and because I’m trying options I only need the stocks to move a percent or 2.

@Will_Ramb0 Жыл бұрын

@@TradingLitt Thank you for sharing mind sharing that entire list bro?

@redcloud6960 3 жыл бұрын

Can i get afl vwap ?

@NateLockett 3 жыл бұрын

Great video! Wonder which VWAP in TOS you are using and the settings? Thank you!

@TradingLitt 3 жыл бұрын

thnaks! it's the default settings for VWAP, I just have the upper and lower lines off.

@sumeetsingh7156 3 жыл бұрын

Great Video. what value of RSI should I have to get more good results.

@TradingLitt 2 жыл бұрын

Not sure, I don't use the RSI intraday.

@syedtalha564 3 жыл бұрын

Can you tell me which EMA study did you use in TOS. What is it called exactly.

@TradingLitt 3 жыл бұрын

it's the "MovAvgExponential" and I set it to 9

@H_Doggy_Dogg 3 жыл бұрын

Please share more plays from your playbook!! This is awesome 👍

@TradingLitt 3 жыл бұрын

Thanks, and I'm planning on it!

@rampagetrickz 3 жыл бұрын

Lol bro, I've just invented this strategy today, checked YT for it and found ur video :D Do you have some ideas to improve this strategy? Whats about gapping down?

@TradingLitt 3 жыл бұрын

lol! yes it works in reverse, gap down or up...it's important to take note if the gap breaks the previous couple day's trend though.

@MarcusCosten 3 жыл бұрын

I'm noticing repeated past bullish patterns when the VWAP crosses above the 9EMA. I'm racking my brain wondering why it's reversed. And yes my indicators are setup and being viewed correctly lol. Is that normal?

@TradingLitt 2 жыл бұрын

Do you have any examples? Was it a gap-up day after a the stock was downtrending?

@beezytalkingshit9319 Жыл бұрын

I like your strategy but im goin to use it on the 15min. I look for bigger moves. I also added the 5ema on it also. I'll use 5ema to get out of the trade. Big thing I like is the Vwap crossing. I knew it was something with it I just couldn't figure it out until I seen this video. It was in my face the whole time. So glad I seen this.

@PedroAcacio1000 3 жыл бұрын

"Thanks for watching and I see you on the next one. Peace!" Is this MKBHD? Hahahaha

@TradingLitt 3 жыл бұрын

Haha, I love his channel...been watching MKBHD for years!

@Mike-kg3hd Жыл бұрын

Turning ON pre-market on chart is required or NO premarket?Thanks

@TradingLitt 11 ай бұрын

No pre-market for this setup

@daws3173 3 жыл бұрын

Any Pacific settings for the ema?

@TradingLitt 3 жыл бұрын

Just the default settings but changing the value to "9"

@Jcrusadr 6 ай бұрын

Good Strategy - would you say you are profitable?

@multimatumc 3 жыл бұрын

Great strategy, does this work in reverse also you think? Say if I wanted to find stocks that gapped down and open a put option? Also, what would be the minimum gap you are looking for, 5% or more?

@TradingLitt 3 жыл бұрын

thanks! and yes it works in reverse. it's more effective if the stock gaps down and breaks an uptrend as that's what I pay more attention too rather than how much it's actually gapped up or down.

@lydiepayen472 9 ай бұрын

can i have the script please?

@laymar1560 Жыл бұрын

LOVE THE VIDEO HOWEVER YOU NEVER SHOW HOW TO ADD BOTH INDICATORS IN THE CHART

@Mz200k 3 жыл бұрын

Do you have a fib trading video?

@TradingLitt 2 жыл бұрын

I've been asked to do one a lot so it's definitely coming soon!

@Mike-kg3hd Жыл бұрын

what difference it will make if we turn on pe-market? thanks

@TradingLitt 11 ай бұрын

Pre-market will effect the calculations of VWAP and the EMA because there's data pre-market like price and volume and usually the pre-market volume and price is not as relevant for a setup such as this

@muhammedfarooq7219 3 жыл бұрын

Bro which candle are u using for this strategy?

@TradingLitt 2 жыл бұрын

3 minute timeframe

@memories-fh5fd 15 күн бұрын

Does a flat, horizontal VWAP point to no real trend?

@TradingLitt 13 күн бұрын

Some traders interpret it that way.

@Qliphirot 3 жыл бұрын

What is the VWAP period? day, week?

@TradingLitt 3 жыл бұрын

VWAP is only really for intraday time frames...doesn't matter if you're on the 1min or the 15min, as long as you're intraday.

@amn175 3 жыл бұрын

Is EMA stand for moving average exponential ?

@jonathanthomas2449 3 жыл бұрын

yes

@Qliphirot 3 жыл бұрын

No, it stands for exponential moving average

@rootsthe1 2 жыл бұрын

👍🏾✊🏾✌🏾💪🏾

@inasabdella1 3 жыл бұрын

How do you search for stocks?

@TradingLitt 3 жыл бұрын

Lately I’ve been trading the same basket of stocks. Mostly the high beta large cap names. But every now and then I scan on Finviz to see if there’s something new. I also follow sectors, this year the SAAS stocks really took off so they’re always on watch too,

@inasabdella1 3 жыл бұрын

@@TradingLitt Thank you!

@Sixty-Five-F1 Жыл бұрын

you call this chop. man did we not know what we had. haha

@branchissimon2491 3 жыл бұрын

What VWAP

@pappu2405 2 жыл бұрын

Volume Weighted Average Price

@tylerhall9412 3 жыл бұрын

Idk if this is necessarily a great strategy for short time frame intraday trades, it seems like it would be fantastic strategy for holding a position from market open to right before market close. The ema isn't crossing below the vwap all day on these charts, and these charts are showing the close of the day being way higher than the open of the day. Idk, very interesting.

@TradingLitt 2 жыл бұрын

It would depend on the day as not everyday the market will trend for the full day which is why you want to have an exit strategy.

@tylerhall9412 2 жыл бұрын

@@TradingLitt Indeed, always gotta have an exit and have your risk managed before you even enter the trade👍