Sorensen,
I don’t take my volume signals on NUGT but directly on GDX and then I execute the trades on NUGT.
The anchored VWAP is “fixed” from the entry point. Let’s look at a 5-minute chart. Yesterday the buy from oversold triggered on the 11:05 am candle at $50.13 and I bought NUGT at $17.10. At the close, 59x5minutes have passed so I draw a moving VWAP for the number of periods or 59. It is the white line at 50.02. It represents the average price paid by all buyers since the signal and my entry triggered. Because GDX officially closed at 50.12, I am in company of a winning and controlling group of buyers from the entry time. I want to monitor from now on if I stay in good company and will only exit if the anchored VWAP is decisively violated. At the open, I will increment the moving VWAP periods by 1 every 5 minutes. As time passes by, you can switch and adapt the moving VWAP for 10, 15 or 30-minutes charts.
Attachment 13412
It is still too early to trail a stop, and my current initial (leveraged) stop is at Daily S1 (49.42). I am waiting for GDX to trade above the high of the entry (yesterday’s) date to start trailing.
Note that if the anchored VWAP is hit once trailing, but the PM Money Flow is strong and rising, I will allow for a lot of discretionary wiggle room around that VWAP. If the MF is weakening instead, I will be very quick to exit.
Hope this helps.
Billy