Anchored VWAP Pinch & Handoff, Intervals, and Signals

The Anchored VWAP Pinch & Handoff, Intervals, and Signals indicator provides a comprehensive toolbox for traders utilizing Anchored Volume Weighted Average Price (AVWAP) techniques to identify dynamic support, resistance, and potential breakout zones.

Usage

The script is divided into three primary functional sections:

Pinch & Handoff This method uses two manual AVWAPs (Upper and Lower) to define a price range. When price consolidates between these levels, it creates a "Pinch," suggesting a period of compression that often precedes an explosive breakout. The "Handoff" AVWAP is typically set after a breakout occurs, acting as a new level of support or resistance for the ensuing trend. Users can manually adjust anchor dates or drag vertical lines on the chart to set these levels.

Intervals This section displays up to six periodic AVWAPs that reset cyclically (e.g., Daily, Weekly, Monthly). These are ideal for identifying value areas across different timeframes. The indicator automatically filters out intervals lower than the current chart timeframe (e.g., a 1-day VWAP will not appear on a weekly chart) to maintain workspace clarity.

Auto The Auto section identifies significant price or volume events (Highest/Lowest Source, Volume, or Pivot points) within a lookback period and automatically anchors VWAPs to them. This is useful for dynamically tracking the average price from the most recent swing highs or lows.

Details

The "Pinch & Handoff" concept was popularized by Brian Shannon and focuses on the psychology of supply and demand during consolidation. The script utilizes line drawings for the "Auto" section due to its retroactive nature, which is subject to TradingView's 500-line limit. If the combined length of automatic VWAPs exceeds 500 bars, older segments will disappear. All VWAP plots are available for selection within the TradingView Alert creation dialog, allowing for automated notifications based on price interactions with these levels.

Settings

Pinch & Handoff

• Event Hi/Lo/HandOff: Date and time inputs to set the manual anchor points.
• Zone Type: Choose between Percentage (% Above/Below/Dual) or Standard Deviation (StDev Above/Below/Dual) to create price channels around the AVWAP.
• Zone Width: Determines the distance of the zones from the central AVWAP line.

Intervals

• Show [Interval]: Toggles individual periodic VWAPs (1D, 2D, 1W, 1M, 3M, 12M).
• Dividends/Earnings/Splits: Toggles AVWAPs anchored to specific corporate events.
• Earnings Offset: Adjusts the anchor point for earnings to account for pre-market or after-hours reporting.

Auto

• Signal: Determines the logic for the automatic anchor (Highest, Lowest, Highest Volume, Lowest Volume, Pivot High, or Pivot Low).
• SignalBars: The lookback length used for Highest/Lowest calculations.
• Bars Left/Right: The required strength/confirmation bars for Pivot High/Low detection.

FAQ

How do I use the Pinch & Handoff feature? Identify a significant high and low on your chart, then set the "Event Hi" and "Event Lo" dates to those points. Watch for price consolidation between the two lines and look for a breakout with a subsequent "Handoff" to a third anchor point.

Why are some interval VWAPs not appearing on my chart? The script automatically hides intervals that are lower than your current timeframe to prevent visual clutter. For example, if you are on a Daily chart, the 1-Day AVWAP will be hidden.

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