Trading below the VWAP

[Trading below the VWAP]

I’m just curious as to if it’s wise (or common) to place a trade when the action is below the VWAP. Say for instance you see an indecision doji and a trend reversal is starting to form.. or say a double bottom candlestick has formed and you see a reversal. Should trades such as these be taken?

Thanks in advance. 

[HOD/LOD]

On 9/17/2021 at 1:46 PM, Bailey Nevener said:

Hi Paul,

I might have to split your question up:

 

If premarket high is a higher price than the high after the market open, which one is the "high of day"?

The high of day is the highest price after the market open.  If premarket high is a higher price, it is still just "premarket high", NOT high of day.

 

 

Should I plot premarket high/low?

Yes, and better yet you can have DAS automatically plot those levels for you.

Right click a Chart > Study Config > select a PriceMarker indicator > Configure to display PreMktHigh and PreMktLow.

You can do the same thing for High of Day and Low of Day as well,

but make sure your make the line style different from daily levels

otherwise you might accidentally think that the high of day bounced off of a daily level when there isn't actually a resistance there etc...

Thank you very much, Bailey. Your answer was definitely helpful. 

[HOD/LOD]

Do you take pre-market into account when plotting where the high of the day and the low of the day lays?