Midas 6 Anchored VWAP

The Midas 6 Anchored VWAP indicator tool provides traders with the ability to plot up to six independent Anchored Volume Weighted Average Price (AVWAP) lines from specific user-defined points in time. This multi-anchor approach allows for the identification of significant support and resistance levels derived from key market events, such as earnings reports, trend reversals, or high-volume sessions.

Usage

The tool is designed to provide flexibility in market analysis by allowing users to select multiple starting points for the VWAP calculation.

• Identifying Support/Resistance: Traders can anchor the VWAP to a significant low or high. If the price remains above the AVWAP, it often acts as dynamic support; if below, it acts as dynamic resistance.
• Trend Confirmation: By using multiple anchors (e.g., one from the yearly open and one from a recent swing low), traders can look for "confluence zones" where multiple AVWAP lines intersect.
• Visual Tracking: The script automatically places a numbered label at the selected start time for each enabled AVWAP, making it easy to track which line corresponds to which event.
• Alerts: Built-in alerts trigger when the price crosses over or under any of the active AVWAP lines, assisting in timely execution.

Details

The Anchored VWAP (AVWAP) differs from a standard VWAP in that it does not reset at the start of a new trading session. Instead, it maintains a cumulative calculation of volume and price starting from a specific candle. The Midas 6 Anchored VWAP uses the MIDAS (Market Interpretation/Data Analysis System) approach, which emphasizes the importance of volume-weighted prices starting from meaningful trend changes. The script calculates the cumulative volume and the cumulative product of volume and the selected source (defaulting to HLC3) to derive the average price since the anchor point.

Settings

The settings are organized into six identical sections, one for each potential Anchored VWAP:

• Enable: A toggle to turn the specific AVWAP line on or off on the chart.
• Start Time: A date and time picker used to define the exact bar where the AVWAP calculation begins.
• Source: Defines the price data used for the calculation (e.g., Close, HL2, HLC3, OHLC4).
• Label Background: Adjusts the color of the identification labels that appear at the anchor points.

FAQ

How do I use multiple anchor points effectively?

Traders typically anchor the first line to a long-term structural point (like a major bottom) and subsequent lines to more recent significant peaks or valleys to see how different market cycles interact.

Can I change the color of the AVWAP lines?

Yes, the colors can be customized within the "Style" tab of the indicator settings to help differentiate between the six possible lines.

How can I access Midas 6 Anchored VWAP?

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