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the_information_nexus/financial_docs/vwap_atr.md

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