Anchored VWAP starts from a custom starting point rather than the session open. This makes it much more flexible for analyzing price relative to specific events.
Instead of resetting daily, Anchored VWAP begins at an event you choose and accumulates forward.
When to Use It
- Earnings — measure price reaction from the gap
- Major news — assess if price is above/below post-news average
- Trend start — anchor at the beginning of a new trend
- Breakouts — anchor at the breakout level to test hold strength
- All-time highs/lows — measure the average since the record
The purple line is the Anchored VWAP from the marked event. The shaded area shows the cumulative volume-weighted price since the anchor.
Regular vs Anchored VWAP
| Aspect | Regular VWAP | Anchored VWAP |
|---|---|---|
| Start | Market open | Custom event |
| Resets | Daily | Never |
| Best for | Intraday | Multi-day swings |
| Sensitivity | High | Low |
How to Use in POC Scanner
- Click on the chart or use a preset timeframe to select an anchor point
- Toggle Anchored VWAP on/off to compare with regular VWAP
- Observe interaction — above anchored VWAP = strong, below = weak
Tips
- Price above anchored VWAP → uptrend since anchor is intact
- Price below anchored VWAP → move since anchor is losing steam
- Touch of anchored VWAP after an extended move → low-risk entry
- Combine with Volume Profile — when anchored VWAP aligns with POC or VAH/VAL, the level becomes highly significant