Anchored VWAP
Original schematic showing the guide's principal visual relationships.
Formula and components
A volume-weighted average price calculated from a chosen event or pivot instead of the session open.
Anchored VWAP = cumulative sum(Price × Volume) ÷ cumulative Volume from the selected anchor.
How it works
The indicator transforms price, range, or volume observations over a selected lookback. Shorter settings react faster but create more noise; longer settings respond more slowly and emphasize the underlying regime. Always compare the reading with price structure and timeframe.
How to read it
It estimates the average participant cost since earnings, a breakout, a major low, or another defensible anchor.
Confirmation checklist
Confirm that participation supports the price move and compare like-for-like sessions. One unusual print or event-driven spike should not define the entire signal.
Limitations and false signals
Anchor selection is subjective; choosing the event after seeing the result creates hindsight bias.