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Mimic Brian Shannon's Anchored VWAP/AVWAP from AlphaTrends in Thinkorswim - Midas Technical Analysis - YouTube
Channel: Easycators
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Hey what's up guys Josiah here at Easycators.com and I've had several
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requests over the years and a few
recently as well for a tool similar to
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what Brian Shannon of alphatrends uses
he calls it the anchored VWAP or AVWAP
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I've heard this referred to as several
different things actually so here's
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Alphatrends article about how to use
anchored VWAP and you can see it's
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basically anchoring or fixing a VWAP to
a specific bar and calculating forward
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from there
and so that's how he uses it but Brian
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uses it in a lot of his videos and it is
a very interesting tool it seems to
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provide a lot of support and resistance
areas on your chart and identify those
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well in advance I've also heard this
referred to as Midas technical analysis
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you can see here in this book -
technical analysis of the wealth
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approach to trading and investing in
today's markets this this particular
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book I read a while back and it promotes
a similar concept I don't know if this
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is where Brian learned about the concept
or not but anyway if you're interested
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in reading more about it you can check
out that book the midas lines are
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calculated just slightly differently
than a normal view offline but almost
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too little of a difference to matter but
i have put together an indicator that
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will accomplish both of those it will
behave as an anchored B WAP or as a
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Midas technical analysis line the -
lines you're able to actually anchor it
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they calculate them instead of from the
midpoint of the bar or the VWAP point
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of the bar the open high low close
divided by four or one of these other
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bar average prices the - lines actually
can be anchored to the high or the low
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of a bar as well so in the pivot highs I
believe the anchor to the low of the bar
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and so you can see how that looks here
it's calculating VWAP
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based on the low price of the bar
instead of the mid price of the bar and
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so that's what that would look like and
the same thing with the support lines
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you can go in here and change it to
calculate based on the high of the bar
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and so that changes the line just
slightly and you can see it it behaves
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very similar to a normal view up line
but can I think these are actually good
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in really strong trends those can
identify support and resistance in both
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types of trends so but in any case so
this behaves as an anchored bewafa and
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is a midas line or midas technical
analysis bwaah and so I wanted to just
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kind of walk you through how to set this
up how it how it's used and so forth so
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understand just assuming we wanted to
anchor a bar or a view up onto this
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particular pivot high here I'll just
walk you through setting up a new line
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here so this is the 20th of May and the
high bar here looks like it's probably
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this green bar which is the ten o'clock
bar so let's go in and just add anchor
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one to that type of anchor B WAP
double-click to add a new copy and then
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I'm going to change this to the 20th of
May and I can't remember did I say the
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90
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can't remember what time I said but let
me just type it in as a 10 it looks like
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it's let's see and I'll hit apply there
and see what we get here so yeah so yeah
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that was the ten o'clock bar so and you
can see it anchored it to that
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particular bar and upon sex will went
through the rest of the chart and so
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this is you know multiple days now the
good thing about this is that also you
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can use this on multiple time frame so
if we were to zoom into a five-minute
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chart that would work just fine as well
so I'll zoom in there and show you what
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that looks like and then if I were to
zoom out to a daily chart those same
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lines would still be there and I'll do
that real quick so you can see here and
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because I actually still have them
anchored to the low and the high price
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so it looks a little different but if I
were to change these back to the normal
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be watt price points these will look
more like normal anchored be wops switch
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this one real quick
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and so you can use any of these normal
you know bar price points high-low / -
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high low close / 3 open high low close /
4 or the be-bop that comes with
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thinkorswim that finds the volume
weighted average price point of a
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particular bar and then then sums all
that up for the for the whole chart to
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calculate the moving average or the v
whop line so anyway so you can see that
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I zoomed out to the daily chart and we
still got the anchored V wops from the
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highs and from the lows and from that
new pivot that we looked at now if i
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zoom into back to the 30-minute chart we
should be back to square one there so
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that's how that works
now so it's pretty intuitive pretty
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quick too to do it's not as fast as just
point and click like in TC2000 how
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Brian Shannon uses that but it is fairly
quick and easy to add one to your chart
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and get it set up how you want it now
you can also you know adjust your colors
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here you don't have to have it red and
green if that you know annoys your eyes
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or
thing like that you can add standard
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deviation lines to these V wops as you
can see here you can plot standard
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deviation lines forward from that
particular point you can adjust what
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those thresholds are or multiples are
you can actually I've opened up the
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price point and the volume to the user
to adjust how they want so you can like
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I said you can use high and low for
Midas lines or you can use the V while
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for the normal V whomp line for volume
you can actually base it on tick count
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not just share volume so you can wait
the average by tick count rather than
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just by share volume and so I just try
to keep things as flexible as possible
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for people and that allows you you know
to explore different interesting ways of
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using these types of indicators and
seeing if you can find some additional
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sources of edge there so the tick count
though however it only works on the
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intraday charts so just keep that in
mind
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thinkorswim only provides tick count
data on intraday charts daily and above
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you need to use volume as usual so
anyway that's how this indicator works I
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think it's pretty cool and these view
ups are really interesting
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but anyway up until now I hadn't really
provided an anchored Biwa tool on my
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site and I thought I'd just go ahead and
do that and what I've done is actually
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just added it to a the existing multiple
time frame view up indicator set that
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I've had for many years that allows you
to plot you know our levy wops and for
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our b wops and full chart view ops and
yearly b whomps and so forth I thought
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it would make a nice complement to that
so I in not said I'm including the
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normal multiple time frame view op
indicator as well as the anchored view
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up that allows you that I've just
demonstrated here that allows you to
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anchor to a specific point and so this
gives you some examples some screenshots
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with examples of how that works and then
there's some examples of the multiple
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time frame
indicator as well so that's all included
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that's just in a free addition that I've
just added into the multiple time frame
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V wop indicator that's on the side if
you're interested and again that book -
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technical analysis if you're interested
in learning more about that type of
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analysis that's available in Amazon I
think I actually checked it out of my
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library originally so it might even be
in your local library
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anchored view up you can read more about
that on the half the trends down that
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from Brian Shannon's own website
hopefully this will be useful to some of
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you I think there's some good room for
exploring anchored B wops and seeing
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what kind of edges can be had from those
and hopefully this video will help you
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get introduced to that a little bit and
show you how that indicator works show
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you the kind of the pluses and minuses
of you know we can't we can't do exactly
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the point-and-click type of anchored
blue blob but we can get pretty close to
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that I think or swim and that would
allow you to you know follow along with
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Brian Shannon and you know mimic his
charts on Thinkorswim so anyway
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hopefully this helps check us out at
Lisa Katie's comm if you have any
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questions feel free to send me an email
there follow me on twitter be sure to
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hit the Subscribe button and the LIKE
button and I will talk to you next time
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Thanks!
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