What it does
Anchored VWAP is the volume-weighted average price computed from a user-chosen starting bar rather than from the session open. From the anchor forward it accumulates price times volume (using typical price per bar) and divides by cumulative volume, so it represents the average cost basis of everyone who traded since that event. Traders anchor it to swing highs and lows, earnings gaps, breakout bars, or major news candles.
Typedraws on the price chart
How to add it
Click Indicators (ƒx) in the header.
Search “Anchored VWAP” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Price above an anchored VWAP means the average participant since the anchor is in profit, supporting a bullish bias; price below it flips the bias bearish.
- Anchor to a significant swing low or high: pullbacks to the rising anchored VWAP in an uptrend are classic buy-the-dip zones with a stop below the line.
- Anchor to an earnings release or gap bar to track whether post-event buyers remain in control; a loss of that VWAP often triggers exits from event-driven positions.
- Use two anchors, one from the last major low and one from the last major high; the region between the two lines frames the current battleground.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Anchor Period | select | session | Session / Week / Month / Quarter / Year / Decade / Century |
| Anchor date/time | time | — | — |
| Source | select | hlc3 | Close / Open / High / Low / HL2 / HLC3 / OHLC4 |
| Offset | number | 0 | -500–500 |
| Bands Calculation Mode | select | Standard Deviation | Standard Deviation / Percentage |
| Show Band #1 | boolean | On | — |
| Bands Multiplier #1 | number | 1 | 0–100 |
| Show Band #2 | boolean | Off | — |
| Bands Multiplier #2 | number | 2 | 0–100 |
| Show Band #3 | boolean | Off | — |
| Bands Multiplier #3 | number | 3 | 0–100 |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| AVWAP | line | #1e88e5 |
| Upper Band #1 | line | #4caf50 |
| Lower Band #1 | line | #4caf50 |
| Upper Band #2 | line | #808000 |
| Lower Band #2 | line | #808000 |
| Upper Band #3 | line | #00897b |
| Lower Band #3 | line | #00897b |
Every plot's color, line width and visibility can be changed on the Style tab. Precision, price-scale labels and status-line values are configurable at the bottom of the Style tab.
Tips
- Use Add to favorites in the legend menu; starred studies surface at the top of the picker.
- The legend eye toggles it off without losing your settings — handy for before/after comparisons.
- Its price-scale label can be switched off per-indicator at the bottom of the Style tab if the axis gets crowded.
Watch out for
- The output depends entirely on a subjective anchor choice, so two traders can draw contradictory levels on the same chart.
- Long after the anchor, accumulated volume makes the line very slow to react, and it needs trustworthy volume data to mean anything.