the_information_nexus/financial_docs/vwap_atr.md

2SD VWAP Trading System Checklist

Setup Process

1. Initial Setup

• Open TradingView
• Create two charts side by side
• Left: ES1! 15-minute
• Right: BTC/USDT 15-minute
• Clear all existing indicators

2. Add Indicators

• Add VWAP (standard settings)
• Add 2SD bands (using code provided)
• Add ATR (14 period)
• Make VWAP blue, upper band red, lower band green
• Verify indicators are updating correctly

3. Alert Setup

• Create band touch alert (upper)
• Create band touch alert (lower)
• Set alerts to 'Once Per Bar'
• Include ATR value in alert message
• Test alerts are working

Trade Process

Pre-Trade Checklist

• Alert received
• Check which band was touched
• Note current ATR value
• Calculate position size (Risk/ATR)
• Verify pattern exists:
  • Price touched band
  • Clear rejection visible
  • Room to VWAP exists

Trade Execution

• Enter after rejection confirms
• Place stop beyond rejection point
• Set target at VWAP
• Record entry details:
  • Entry price
  • Position size
  • Stop level
  • Target level
• Monitor for pattern break

Quick Reference

Long Setup 🟢

• → Touch lower band
• → Rejection upward
• → Target: VWAP
• → Stop: Below rejection

Short Setup 🔴

• → Touch upper band
• → Rejection downward
• → Target: VWAP
• → Stop: Above rejection

Position Sizing Formula

Position Size = Account Risk / Current ATR
Example:
- Risk: $100
- ATR: $2.50
- Position = $100/$2.50

Pattern Requirements

1. Clean move to band
2. Clear rejection
3. Room to VWAP
4. No pattern = No trade

Remember

• Pattern exists or doesn't - no maybes
• Use ATR for position sizing only
• Exit at VWAP or pattern break
• Keep it simple

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Note: Check all boxes ([ ]) as you complete each step. Reset checklist for each new trading session.