Anchored VWAP

The Anchored VWAP indicator tool calculates the Volume Weighted Average Price starting from a specific point in time, allowing users to analyze price action relative to a significant market event.

Usage

The Anchored VWAP is primarily used to identify support and resistance levels starting from a specific candle. Unlike a standard VWAP which resets daily, weekly, or monthly, the Anchored VWAP allows the user to select an exact starting point—such as a swing high, swing low, or an earnings announcement—to see how volume-weighted price has evolved since that moment.

When price is above the Anchored VWAP, the trend from that anchor point is generally considered bullish, with the line acting as potential support. Conversely, when price is below the line, the trend is considered bearish, acting as potential resistance.

Details

This script utilizes interactive chart capabilities, allowing the user to select the "Start Calculation" point directly on the chart. The calculation begins at the specified timestamp by accumulating the product of price and volume, then dividing it by the total accumulated volume from that point forward.

The mathematical formula is: Cumulative (Price * Volume) / Cumulative Volume

Settings

• Source: The price input used for the calculation (default is HLC3).
• Start Calculation: The timestamp where the VWAP calculation begins. This setting uses the confirm=true parameter, enabling interactive placement on the chart upon adding the indicator.

FAQ

How do I use the Anchored VWAP?

Select the indicator and click on the specific candle where you want the calculation to begin; the line will then project from that point forward based on volume-weighted data.

Can I set alerts for price crosses?

Yes, the script includes built-in alert conditions that trigger when the price crosses over or under the Anchored VWAP line.

How can I access Anchored VWAP?

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