Tools & IndicatorsAnchored VWAP
VolumeAdvanced[ MP.IND.ANCHORED_VWAP ]
Anchored VWAP
Anchored VWAP
Anchored VWAP allows you to calculate VWAP starting from any point in time chosen by the trader, instead of resetting it every session.
Category
Volume
Difficulty
Advanced
Markets
Stocks, Indices, Futures
Timeframe
1H, 4H
Combinations
2 tools
Signals
4 setups
LIVE CHARTAnchored VWAP ACTIVE
[ HOW TO READ THE CHART ]
Green Zone: Price above A-VWAP → All buyers since the anchor are in profit: strength
Red Zone: Price below A-VWAP → All buyers since the anchor are at a loss: weakness
Main Line: A-VWAP retest from above → Strong institutional buy zone
Confluence: Combine Anchored VWAP with VWAP Session for maximum probability
[ WHAT TO WATCH ON THE CHART ]
Observe how Anchored VWAP behaves relative to key price points. Note moments when the indicator reaches extreme levels and how price reacts. Look for divergence patterns between the indicator and price movement.[ FORMULA ]
VWAP = Σ(TP × Volume) / Σ(Volume) Calculated from the anchor point chosen by the trader TP = (High + Low + Close) / 3
What signals does Anchored VWAP generate?
Price above A-VWAP → All buyers since the anchor are in profit: strength
Price below A-VWAP → All buyers since the anchor are at a loss: weakness
A-VWAP retest from above → Strong institutional buy zone
Three divergent A-VWAPs as support → Multiple liquidity zone: high-probability entry
What is Anchored VWAP and how does it work?
Anchored VWAP allows you to calculate VWAP starting from any point in time chosen by the trader, instead of resetting it every session. Created by Dr. Cari Longfellow and popularized by Brian Shannon, A-VWAP has become one of the most used tools by institutional traders on stocks and futures. The anchor point can be: an earnings announcement, a significant gap up/down, a 52-week high/low, the start of a trend, an important market pivot.
How do you use Anchored VWAP in trading?
The most effective anchor points:
1) POST-EARNINGS A-VWAP: Anchor VWAP on the earnings report day. Shows whether post-earnings buyers or sellers control the trade.
2) BREAKOUT A-VWAP: Anchor at the breakout point of a significant resistance. As long as price stays above this A-VWAP, the breakout is valid and strong hands are in profit.
3) 52-WEEK HIGH/LOW A-VWAP: Anchor at the yearly high/low. Indicates who controls from the annual perspective.
4) IMPULSE A-VWAP: Anchor at the start of an impulsive move. Shows the average price of those who bought in the impulse — if price returns below, impulse buyers are at a loss.
Two A-VWAPs in confluence + session VWAP = triple institutional liquidity zone.
What are the strengths of Anchored VWAP?
Extremely flexible: adapts to any market event
Real institutional level: indicates who's in profit since the event
Unique in its kind: no other tool provides this information
What are the limitations of Anchored VWAP?
Requires subjective choice of the anchor point
Available only on some platforms (TradingView Pro)
Loses relevance in the long run
[ RELATED INDICATORS ]
Liked this? Get one like it every week
Weekly market setups, new guides and AI insights. Free, zero spam.