Alpha Edge Pro - Intraday [LevelUp]

Alpha Edge Pro™ is a collection of tools for intraday analysis built in collaboration with Brian Shannon, CMT, creator of the anchored VWAP (AVWAP) and the author of two best-selling books on technical analysis.

🔹—— Key Features ——🔹

▪ AVWAP auto-anchored on 1-day, 2-day, week-to-date and month-to-date.
▪ AVWAP works with any global exchange, respecting trading days, hours & holidays.
▪ AVWAP and the TradingView Replay are excellent for historical analysis.
▪ 5-day moving average auto-calculated based on the chart timeframe.
▪ 5-day moving average auto-adjusts the minutes in the trading day for crypto and futures.
▪ View up to two daily moving averages on intraday charts.
▪ Pivot points (floor trader pivots) highlight support/resistance levels (R1/S1, R2/S2, etc).
▪ Highlight current and prior day highs/lows as these are areas of potential support and resistance.
▪ Comprehensive stats tables for AVWAP, price highs/low, pivots and ATR (average true range).
▪ Custom alerts for AVWAP, pivot points and 5-day moving average.

🔹—— AVWAP ——🔹

The Volume Weighted Average Price (VWAP) is the cumulative average price a stock traded for one day. AVWAP is the same as the VWAP with the exception that the start point (the anchor) is configurable based on a trader's preference, not simply the start of the trading day. From the anchor point forward, on each bar, AVWAP is calculated based on the cumulative volume and average price.

The AVWAP shows the relationship between price and volume over any time period based on the anchor point. At a glance we can see who is in control, the buyers (bulls) or the sellers (bears).

AVWAP Concepts
▪ When a stock is above an advancing AVWAP, buyers are in control for that timeframe, as the average price is increasing.
▪ When prices are below a declining AVWAP, sellers are in control for that timeframe, as the average price is declining.
▪ When prices oscillate above and below the AVWAP it indicates indecision for that timeframe.

What's unique about AVWAP in this indicator is that it is auto-anchored on 1-day, 2-day, week-to-date and month-to-date. In addition, Alpha Edge supports any exchange around the globe, respecting trading days, hours and holidays. You can also use the TradingView Replay feature with this indicator, a powerful tool for historical and post-mortem analysis.

▪ 1-Day, 2-Day and Week-To-Date


▪ Saudi Exchange (Tadāwul)
Trading Days: Sunday to Thursday, 10:00am to 3:00pm.
Auto-Anchor: Detects start of trading week.


▪ London Stock Exchange (LSE)
Trading days: Monday to Friday, 8:00am to 4:30pm.
Auto-Anchor: Detects U.K. bank holiday.


▪ Review Historical Data and Past Trades


🔹—— 5-Day Moving Average ——🔹

A common trend following theme is to look for stocks where the trend of the 50-SMA is upward. We can view intraday charts to see if the price action is setting up for a low risk trade by verifying that the shorter timeframe aligns with the longer. As we look at various timeframes, we need to make sure the moving average is consistent across the timeframes, which is done via the 5-day moving average as explained by Brian Shannon:

"If you want to see a five DAY moving average on a chart with 10 minute candles, you have to consider how many 10 minute periods of trading there are in the trading day. The US equities markets are open from 9:30- 4:00 each day, which is 6.5 hours per trading day. In each hour of trading, there are 6-10 minute periods, so during the regular session for equities, the market is open for 390 minutes or 39-10 minute periods per day. If we are to get a five day moving average, we would take the 39-10 minute periods the market is open each day and then multiply that by five days. 39 x 5 = 195. So a 5 DAY moving average is represented by a 195 PERIOD moving average when looking at a 10 minute timeframe."

As trend followers, our goal is to find stocks where the 5-day moving average is trending up.

In Alpha Edge, the default value for the minutes per day is 390, the number of minutes in one trading day in the U.S. This value can be changed to match any exchange. For example, if trading the India National Stock Exchange (NSE), which is open from 9:15am to 3:30pm, the minutes per day could be set to 375.

Minutes per day are auto-adjusted for crypto and futures:
▪ Crypto: 1440 minutes per day based on 24 hrs per day.
▪ Futures: 1380 minutes per day based on 23 hrs per day.

▪ 5-Day Moving Average Trending Up


Important Note: Based on the math as described above using the minutes in the trading day, there will be chart timeframes where the 5-day moving average is not shown. If you have the 5-day moving average enabled from within the indicator Settings, yet the 5-day line is not visible, try changing to another timeframe.

🔹—— Vertical Start Line - Anticipating Direction ——🔹

By placing a vertical line on the bar where the 5-day moving average begins, one can anticipate the trend by viewing the bars that will fall off the moving average as new bars are added. This can be helpful to gauge if the trend will continue in its current trajectory or begin to move in a different direction.

▪ 5-Day Vertical Line


🔹—— Intraday and Daily Moving Averages ——🔹

In addition to custom moving averages based on intraday price action, there are two configurable daily moving averages. Viewing daily moving averages on intraday charts can be helpful as they often act as areas of support/resistance.

▪ Daily 10-EMA on Intraday Chart - Acting as Support


▪ Daily 50-SMA on Intraday Chart - Acting as Resistance


🔹—— Current and Prior Day Highs & Lows ——🔹

Linda Raschke, a legendary trader featured in Jack Schwager’s book, New Market Wizards, on the importance of tracking the previous day's price range:

"If I could trade with only one indicator, it would be with the previous day’s high and low. The reason why they are so important is this is where support and resistance come in and they are also the most visible chart points for all market participants. They are very strong psychological markers.”

With Alpha Edge, there are clear visual indicators, with optional price data, marking both current and prior day high/low values. This makes it easy to view potential areas of support/resistance. These areas can also be considered for entering, exiting or profit taking.

▪ Prior Day & Current Day Highs/Lows


🔹—— Pivot Points ——🔹

Floor trader pivot points are price levels that may act as areas of support or resistance. These pivot points were initially created by floor traders operating within the trading pits of the equity futures exchange in Chicago, Illinois.

The calculations for determining these pivots are based on the prior day's high, low and close:

Pivot (P) = (prevHigh + prevLow + prevClose) / 3
Resistance R1 = (2 * P) - prevLow
Support S1 = (2 * P) - prevHigh
Resistance R2 = P + (prevHigh - prevLow)
Support S2 = P - (prevHigh - prevLow)
Resistance R3 = prevHigh + (2 * (pivot - prevLow))
Support S3 = prevLow - (2 * (prevHigh - pivot))

▪ R1 Acting as Resistance


▪ S1 Acting as Support


🔹—— Stats Table ——🔹

With the stats table, at a glance you can view AVWAP values, current and prior days highs/lows, pivot points as well as the ATR (average true range). Each section in the table can be toggled on/off.

▪ Stats Table


🔹—— Custom Alerts ——🔹

Alpha Edge indicator supports the following custom alerts:
▪ 1-day & 2-day AVWAP cross.
▪ WTD/MTD AVWAP cross.
▪ R1/R2 and S1/S2 cross.
▪ 5-day moving average cross.

🔹—— Best Practices ——🔹

▪ Look for confirmation of an uptrend on multiple timeframes.
▪ Use multiple signals and/or patterns for confirmation of the trend.
▪ Avoid chasing extended stocks.
▪ Always define risk before entering a trade — know where you’ll exit.
▪ Size positions based on volatility and conviction, not emotion.
▪ Be patient — trends take time to develop.