All right guys, today we're gonna be talking about V-wap breakouts, how to use it, how to trade those and then the criteria to find the best V-wap breakouts. So welcome back everyone! I Am lead trainer with Stocks Trade Tim Bowen I've been trading for 17 years. been working with Stocks Trade as a mentor for over eight years now. done over 6 000 live trading webinars.

Today we're going to be talking about the number one day trading indicator out there. Um, it's called V Web. So Volume weighted average price and not to get too into the nitty-gritty But the best way I Like to summarize V-wap is it is an amalgamation and check me on that term, but it's a combination amalgamation of the two most important data points when it comes to day trading, price and volume. Remember price, action, volume.

Those are the two by far most important indicators and what I love about V-wap is it basically pushes them together. so it's called volume weighted average Price. So the average price but volume weighted so that again, I Won't get into the Nitty Gritty math. But the best way to summarize it is is basically combining price and value our two favorite indicators and that's why it kind of rides through the middle.

Now, the reason we love those is for several reasons. It's giving us a read on the bullishness or the bearishness of the stock price, and then also it becomes basically what we call a self-fulfilling prophecy. Now this has been going on for I would say about seven or eight years where V-wap is the most fashionable, uh, technical indicator for lack of a better term. I Think back before that about 10 years ago, moving averages were very hot.

you know, very trendy. Fibonaccis. Again, kind of about five years ago, they fell off a little bit. Bollinger Bands RSI Now it may sound corny, you're like fashionable trendy.

We're talking about trading. But what's funny is as these technical indicators and as these strategies become more widespread, everyone air quotes is trading them. and they're looking at these signals. So whether it be a level on a chart or a technical indicator.

If so, if everyone and I'm doing the air quotes I'm just saying a significant majority of momentum day Traders are like hey, this hot sector stock with news just broke through V-wap and they're buying it. think about about what happens. That's that herd. If everyone's rushing into a stock or a concert or a, you know, a basketball game.

okay, what happens to the price? it explodes higher and becomes a self-fulfilling prophecy. So that's why we care so much about V-wab Next thing I'm going to show you is going to jump over to my screen here and when it comes to settings I Want to show you what we're looking at here and these are the settings based on uh, looking for stocks that are that V-wat breakout and you'll see I Like you know I'm low price stock Trader You can manipulate these criteria if you want, but you'll see I'm looking at stocks from one to twenty dollars. We love those one to twenty dollar stocks because that's a very attractive price range for short sellers. Okay, when we can attract those short sellers in, they get twisted up on these stocks and they Spike higher.

So you'll often hear me say I'm not a big fan of true penny stocks. It's because a lot of short sellers don't simply don't like trading true penny stocks. It's hard to get borrows a lot of times. There's different margin requirements like the 250 rule, so people like to short those stocks in that one to twenty range.

So the next thing I'm looking at is Stacks that are up big on the day, more than 10 percent trading big volume greater than a million. And then the last criteria you'll see is basically I'm looking for stocks that are in that sweet spot of two percent within V web. Okay, whether that be two percent below or two percent above because I don't you know I'm looking for stocks that are getting ready to break out I Don't want to find stocks that are already breaking out and with that two percent above or below, that's what that V-wap hugging action. You'll hear me use that term a lot.

So now that stock is riding around view app, you can see we're trending in the afternoon right now. Uh, you see my clock above? it's 11 A.M that's I'm on Pacific Time right now. so we're going into that 2 p.m window exact time of day we want to look for this stock and then what's great is you'll notice I'm running the scan right now I Get six stocks, Six stocks you know, very, uh, usable number. Very actionable number.

You know something that a lot of people will screw up on scans is they'll have you know very wide criteria and because of that you know you catch 50 or 100 stocks. Well that defeats the whole person purpose of a screener or a scanner. The whole point of a scanner is to give us a manageable number of stocks that we can go through and look at and say okay, what's the news, what's going on with this stock, What's the sector, etc etc. So I'm going to jump right ahead and you can see Sano is right at the top of my list and I sort by volume.

Okay, I'm always looking for stocks that are, uh, trading high volume. Now you look at CNO gapped up the previous night, ran up this morning, tried to re-break but then faded. So this is what you know. this is a good example.

This is what I would call a weak price action chart because if you look at the trend, it's broke above view app three times and failed. So that's a no-go now. I'm going to go down through the list and I'm gonna check out Aaoi and you'll see something on Aai that is very attractive. Okay um they had some news this morning.

Uh Aoi adds a VP of Business Development and Broadband access. You can see that news drop this morning it's June 20th at 7 A.M So we have news. We have great volume. Six million shares traded if you notice down here in my Basics box.

Normally the stock trades 400 000 shares on the entire day. Four hundred thousand the entire day. it's 2 P.m We got 6 million shares traded already so that's the criteria we're looking at. We also jump over to the Chart Oh look at that beautiful breakout baby.

look at that 52-week highs huge power. move through that level back there last. Friday at four bucks. Wow, that's a beautiful chart.

So anyway what we're looking at now this is a great example. Live. Sometimes you get lucky. I Mean this video is recorded but the producer just said hey, fire up the scan and show them a candidate.

So here we go. Aaoi When we're looking for that view app hold High Day break that breakout, we're going to look at the morning Highs at 565. you can see the stock. that yellow line is V-wap It's holding above V-wap If this stock can repurp through that 565 level, that would be our entry and then we would risk down on view Apple 540.

That means we're risking about 20 cents a share. Our goal would be 60 cents a share higher. so into the low 620s. Actually, this is a very solid setup if this pushes through the end of the day, so that's what we're looking for.

You can see how I compared one week price action to one that was very strong and one that checked all the boxes versus one that didn't. So that being said, let me know on aaoi how high did it trade on June 20th, 2023 Um, I'll I'll obviously revisit it after this is has been posted. So Number One Afternoon Pattern Number One Technical indicator Number One Screener So there's three different things I want you to focus on in this video: What is V Web, how to use it, how to use the screener, and then how to interpret strong price action versus week price action. Now in summary: if there's any of these things that I you know I know I Talk fast I Click around fast if I went too fast.

If you didn't quite catch it, understand that every single day, six times a day, we're doing what's called The Daily cup Trader System webinars We give a tour of the system. we live trade We Run The Scans live They're 100 free and you can sign up and you can get on one whenever your schedule works. we start at eight in the morning, we go up to nine pm and we even do them on weekends. so click that link below and we'll see on the next webinar.

Thank you!.