Re-Anchoring VWAP Triple

The Re-Anchoring VWAP Triple indicator provides a multi-layered perspective on market valuation by dynamically calculating three Volume Weighted Average Price lines anchored to significant historical pivot points.

Usage

The indicator can be used to identify key support and resistance zones based on historical price extremes. By observing price action relative to these three anchored lines, traders can evaluate trend strength, mean reversion targets, and potential reversal zones.

• ATH VWAP: Acts as a primary benchmark for long-term sentiment. Price trading below this line often suggests a bearish outlook relative to the historical peak.
• Post-ATH Low VWAP: Frequently serves as a dynamic support level during recovery phases, indicating where buyers have historically found value after a major correction.
• Post-Low High VWAP: Useful for identifying resistance during relief rallies or consolidation phases following a significant market low.

Details

Unlike traditional VWAP indicators that reset on a fixed timeframe (like daily or weekly), this tool utilizes event-based anchoring:

1. All-Time High (ATH): The first anchor resets every time the price reaches a new historical high.
2. Lowest Low after ATH: The second anchor identifies the lowest price point reached since the last ATH was established.
3. Highest High after Low: The third anchor identifies the highest peak achieved after the aforementioned lowest low occurred.

This cascading logic ensures the indicator adapts to major market structural changes rather than arbitrary calendar dates.

Settings

The script uses visual defaults for clarity and does not require complex user configuration, as the logic is driven by price action:

• VWAP from ATH: Displays the VWAP starting from the current all-time high.
• VWAP from Low after ATH: Displays the VWAP starting from the lowest point reached after the current ATH.
• VWAP from High after Low: Displays the VWAP starting from the highest point reached after the subsequent low.

FAQ

How do I access Re-Anchoring VWAP Triple?

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

Can I use this for day trading?

While anchored to historical extremes, the levels produced act as significant psychological barriers that intraday traders can use for swing targets or major support/resistance.

Does the indicator repaint?

The anchor points update dynamically as new historical highs or subsequent lows/highs are formed. Once an anchor is established and the price does not create a new extreme, the VWAP line develops linearly based on incoming volume and price data.