VWAP Wave System, Volume Profile, Initial Balance, Price Wave Deviations

Trade futures like ES, NQ, and Gold using the VWAP Wave System. This strategy combines Volume Profile and Initial Balance for precise entries and exits.

Published · Updated · Methodology: Technical Indicators

Part of: VWAP Strategies

  • Methodology: Technical Indicators
  • Content type: both
  • Timeframes: Asia Open, Higher time frame (for trend direction) [1:25], 60 minutes (for VWAP context) [10:00], 2 minutes (for candle analysis) [26:00]
  • Markets: Futures, ES (E-mini S&P 500), NQ (Nasdaq 100 Futures), Gold

Indicators used

  • VWAP
  • Volume Profile
  • Initial Balance
  • Price Wave Deviations
  • Delta

Source video

Decoded from: Futures Trading the Asia Open LIVE with VWAP Wave System by Trader Drysdale — watch the original

Key timestamps:

  • 0:00 - Introduction to VWAP Wave System
  • 1:25 - Gold weakness and short bias
  • 2:40 - NQ analysis for potential long to VWAP
  • 4:50 - Gold short entry
  • 7:50 - Scaling out of gold short, break-even stop
  • 10:00 - Discussion on monthly VWAP and price wave deviations
  • 13:00 - NQ scalp long attempt
  • 16:40 - Gold short profit taking
  • 18:00 - Discussion on low volume nodes and overtrading
  • 22:00 - Fade Value Area Extreme setup discussion

Strategy overview

Trader Drysdale's "VWAP Wave System" is a live futures session recorded around the Asia open, and the framing is unusual for a VWAP video: rather than treating VWAP as a single reference line, it treats it as a wave structure — a running average with deviation bands whose distance from price is read as a signal in itself. Price wave deviations are discussed as tells for fades versus momentum, which is a materially different use of the indicator than "reclaim it and go long."

What distinguishes this session is the layering of timeframes and volume tooling around that idea. The stream steps from a higher timeframe for directional bias, to a 60-minute chart for VWAP context, down to 2-minute candles for the actual read — and the VWAP itself is not one line but several: a session VWAP continued from the previous session, an RTH VWAP, and a monthly VWAP that anchors the longer view. Alongside it, Volume Profile supplies static structure (low volume nodes, value area edges, the point of control), Initial Balance frames the early range, and Delta — including cumulative volume delta — is used to judge participation behind a move, with gold called out as the instrument where it reads strongest.

Because this is a live trading session rather than a lesson, no formal rule set was extracted from it. What it offers instead is a worked example of how a multi-instrument futures trader combines these tools in real time: forming a short bias on gold and a long-to-VWAP idea on NQ, entering, then scaling out and moving to break-even — decisions narrated as they happen rather than specified in advance. The concept page for VWAP covers the indicator itself; this entry is a record of how one trader stacks it with volume-based context during the Asia session.

Topics

vwap trading strategy · volume profile strategy · initial balance strategy · futures trading strategy · es futures · nq futures · gold trading strategy · technical indicators · scalping strategy · day trading strategy · auction market theory · 2 minute strategy · pine script strategy · tradingview strategy · trading strategy

Frequently asked questions

What is the VWAP Wave System?

It is the name Trader Drysdale gives to a way of reading VWAP as a wave structure rather than a single line — using the volume-weighted average price together with its deviation bands, and treating how far price has travelled from the average as information about whether a move is likely to fade or extend.

Why trade the Asia open with VWAP?

The Asia session opens with lower participation than the New York cash session, so early ranges and volume structure form differently. Traders who work this session often lean harder on volume-derived references — session VWAP carried over from the prior session, Initial Balance, and Volume Profile levels — to establish context before the higher-volume sessions arrive.

What is the difference between session VWAP, RTH VWAP and monthly VWAP?

They differ only in their anchor point. A session VWAP resets each session (or is carried on from the previous one), an RTH VWAP is anchored to regular trading hours and ignores overnight activity, and a monthly VWAP averages across the whole month to serve as a slower reference. The same calculation over a longer window produces a slower, less reactive line.

Does this video contain a mechanical rule set I can backtest?

No — it is a live trading session, so entries and exits are narrated as they occur rather than defined as fixed conditions, and no formal rule set was extracted from it. Treat it as an example of how these tools are combined in practice, and test any rules you derive from it on historical data before risking capital.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

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