Anchored VWAP Band

The Anchored VWAP Band indicator provides a comprehensive visualization of Volume Weighted Average Price from a specific point in time, utilizing high, low, and OHLC4 sources to create a "band" effect for better trend and liquidity analysis.

Usage

The Anchored VWAP Band is used to identify key support and resistance zones based on volume-weighted price action starting from a significant market event (such as a high, low, or earnings release). Instead of a single line, this tool plots three distinct VWAP lines:

• Top of Band: Calculated using the High price source.
• Middle of Band: Calculated using the OHLC4 price source.
• Bottom of Band: Calculated using the Low price source.

Traders can use the area between the High and Low VWAPs as a dynamic supply/demand zone. Additionally, users can enable standard deviation bands to identify overextended price moves relative to the anchored starting point.

Details

This script is a modification of standard Anchored VWAP implementations, designed to offer a more nuanced view of value. By calculating the VWAP across multiple price points (High, Low, OHLC4) simultaneously, it accounts for the entire price range of the bars rather than just a single point. The script also includes a custom standard deviation calculation that begins at the anchor point, allowing for volatility-adjusted bands that expand or contract based on price action since the start time.

Settings

• Start Calculation Time: Sets the specific date and time where the VWAP calculation begins. This can be set via the input or by using the drag-and-drop feature on the chart.
• Display Std Dev Bands: A toggle to enable or disable the visualization of standard deviation bands around the VWAP lines.
• Standard Deviation Bands: A multiplier used to determine the width of the standard deviation bands (e.g., 2.0 for two standard deviations).

FAQ

How do I use the Anchored VWAP Band?

You can select a specific candle on your chart to act as the anchor point. The indicator will then calculate the volume-weighted average price from that moment forward across three different price sources to form a band.

Can I set multiple anchor points?

This specific version allows for one primary anchor point. To track multiple events, you can add multiple instances of the indicator to your chart.

Where can I find more tools like this?

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