Home News Score Cleaner Entries With This “Pinch” Tactic

Score Cleaner Entries With This “Pinch” Tactic


It’s been tough buying strength in this market. 

We’ve seen too many whipsaws, failed breakouts, and rug pulls.

This makes perfect sense… because it’s a bear market!

You can also have some instances where as soon as you “buy the dip,” you get another dip, then another and another.

It sounds like there’s no easy way to win!

I want to show you a technique called the Volume Weighted Average Price (VWAP) Pinch to get you into cleaner entries.

Let’s take a look at CF Industries, a name I’ve been stalking for months, looking for a long entry:

CF Chart

CF Chart

After the recent pullback, it’s forming a potential double bottom against the swing AVWAP from last year’s lows.

If you were extraordinarily precise, there were profitable long setups on both attempts… 

But what if you want to score a larger move?

Just wait for the price to break above the upper VWAP, when the price clears above the swing AVWAP from the recent pivot highs.

This allows you to get in the game without a bunch of FOMO (fear of missing out) about not “bottom-ticking” the stock.

If the name continues to grind down into dust, you avoid a costly loss.

We’re currently monitoring many commodities-related names because they’re going through hard resets…

But the longer-term trends are intact. 

If you liked this VWAP Pinch tutorial, just know that it’s a part of our Market Roadmap at Precision Volume Alerts.

This Roadmap points out the best price levels to enter, exit, and take profits in between.

Go here for a full video tutorial on the Roadmap.

Original Post Can be Found HERE

Author: Steven Place

Steven Place is the Chief Strategist at Market Traders Daily. MTD helps investors and traders identify high-profit setups through world-class analysis and trade alerts.

Steven has been developing trade systems and risk management techniques for a decade now.

Through the use of a select few option strategies, Steven teaches clients how to build aggressive and sustainable wealth in the options market.

He lives on the Gulf Coast of Florida with his wife and daughter.

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