VWAP Daily/Weekly/Monthly - Automatic Anchored

The VWAP Daily/Weekly/Monthly - Automatic Anchored indicator automatically plots and resets Volume-Weighted Average Price levels based on daily, weekly, and monthly intervals to help traders identify institutional fair value and trend direction without manual adjustments.

Usage

The Usage of this tool centers on identifying dynamic support and resistance levels across different time horizons. Traders can use the daily VWAP for intraday scalping or day trading, while the weekly and monthly levels provide higher-order context for swing trading and trend confirmation.

• Trend Identification: If price stays consistently above a specific VWAP level (e.g., Weekly), the trend is considered bullish for that period.
• Mean Reversion: Traders often look for price to return to the VWAP when it becomes overextended, viewing it as a "fair value" benchmark.
• Timeframe Convergence: When the daily, weekly, and monthly VWAP levels cluster together, it signifies a strong area of historical value that may act as significant support or resistance.

Details

The script functions by tracking the cumulative product of price (HLC3) and volume, divided by the total accumulated volume within a specific timeframe. The "Automatic Anchored" mechanism detects changes in the calendar period (day, week, or month) based on the user-defined timezone. Upon a new period, the accumulators reset to zero, creating the "jumps" seen on the chart. These jumps are a deliberate design choice to maintain historical accuracy for each period, allowing users to backtest how price reacted to the previous session's VWAP.

Settings

• Show Daily VWAP: Toggles the visibility of the daily anchored VWAP line.
• Show Weekly VWAP: Toggles the visibility of the weekly anchored VWAP line.
• Show Monthly VWAP: Toggles the visibility of the monthly anchored VWAP line.
• Timezone: Allows users to select the specific timezone for session resets, ensuring the VWAP calculation aligns with their local market hours.

FAQ

How do I use the VWAP Daily/Weekly/Monthly - Automatic Anchored indicator?

You can apply it to your chart to see three distinct lines representing the volume-weighted average price for the current day, week, and month, helping you spot institutional interest levels.

Why does the line jump at the start of a new period?

The jump indicates a reset where the calculation starts fresh for the new day, week, or month. This ensures the indicator reflects the true average price for only the current period.

Where can I access this tool?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.