Example Swing VWAP / RSI Divergence Trade: $AAPL

Here’s a trade I entered in Apple about 2 weeks ago where I used the Swing VWAP and the RSI MultiDivergence indicators.

Back in January, the market had gone through a good decline. I was watching the RSI divergence on AAPL. Around that time, a big divergence showed up. This was about the largest in the last two years, and is circled on the chart below. Because of that context, I wanted to look for a long entry. After the swing low on January 3, AAPL kept above the Swing VWAP. It pulled back close to the Swing VWAP, and then on January 15 it had a bullish reversal candle (white arrow). That means the bears are losing, since it couldn’t penetrate the lower VWAP. I entered at the end of the day (yellow line) with a stop at the prior day’s low Swing VWAP (red line), and a target at $185 based on prior resistance.

So far, the trade is going according to plan. My stop is at $160 now, and I just have to manage when I take profits–at the predetermined target or in a discretionary manner. I’m really liking the Swing VWAP for how it tracks what side is winning and what side is losing. As a trader, your money comes from the losers. Markets move because they have to, and that happens because people are blown out of their incorrect positions.

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4 Responses to “Example Swing VWAP / RSI Divergence Trade: $AAPL”

  1. ARTHUR Says:

    Thanks for sharing, looks good!

  2. angelo176 Says:

    This is great… do you have a scan for bullish and bearish to determine your candidates?

  3. Prospectus Says:

    I haven’t made one yet for the VWAP. I’m just manually watching charts at this stage.

  4. Update on Swing VWAP $AAPL Trade | Read the Prospectus Says:

    […] Trading, Think or Swim, Ninjascript and other Rocket Science « Example Swing VWAP / RSI Divergence Trade: $AAPL […]

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