Anchored VWAP

What It Does

Anchored VWAP calculates Volume Weighted Average Price beginning from a specific point selected by the trader. Unlike standard VWAP, which typically begins from the current trading session, Anchored VWAP lets you choose the exact market event or price location where the calculation should begin.

How to Use It

Select Anchored VWAP and place the anchor on an important point on the chart. From that point forward, the line tracks the volume-weighted average price based on the trading activity that occurred after the anchor.

Possible anchor points can include:

• • Major swing highs
• • Major swing lows
• • Breakouts
• • Important reversals
• • Earnings events
• • Large gaps
• • Beginning of a major trend
• • Significant support or resistance reactions
• • Other important market events

Watch how price behaves around the Anchored VWAP after the selected event.

Look for:

• • Price holding above the line
• • Price holding below the line
• • Reclaims
• • Rejections
• • Support or resistance behavior
• • Confluence with market structure
• • Changes in trend or momentum

The anchor point matters. Different anchor locations can produce different information, so choose a point that has significance to the market move you are analyzing.

Anchored VWAP should be used as a market reference and analysis tool, not as an automatic buy or sell signal. Combine it with price action, market structure, volume, trend, and other confirmation.