# VWAP Pinch Tracks two anchored VWAPs (one from the latest confirmed swing high, one from the swing low) and flags a pinch when they converge within 1 ATR with price closing between them. Acceptance beyond either line on 2 consecutive closes resolves the coil, fades the abandoned anchor, and hands the surviving VWAP over as the working support or resistance. - Indicator in the LuxAlgo Library, by LuxAlgo, published Apr 11, 2026. - Access: free. - Concepts: [VWAP Pinch](https://www.luxalgo.com/library/concept/vwap-pinch/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=bmwi4stmpbgw2ahtele6nnn0 - Page: https://www.luxalgo.com/library/indicator/vwap-pinch/ **VWAP Pinch** tracks the two-anchor compression at the heart of the [VWAP pinch](https://www.luxalgo.com/library/concept/vwap-pinch/) read: one VWAP anchored at the latest confirmed swing high, one at the swing low, each re-anchoring as new swings confirm and back-drawn from the swing bar. When the pair converges to within 1 ATR while price closes between the lines, the pinch is on. The zone fills and turns more opaque as it tightens. Acceptance beyond either line on 2 consecutive closes resolves the coil: the escape is marked, the abandoned VWAP fades, and the survivor becomes the working reference. ## How to Trade the VWAP Pinch? - **Pinch active**: a coiled, decision-pending state. Both cohorts trade at average cost and neither holds a cushion. Prepare; do not predict. - **Tightening event**: width narrowed through 0.5 ATR. A resolution is nearing. - **Escape triangles**: held acceptance beyond one line puts the opposing cohort underwater; watch for range expansion, and confirm with structure and volume, since breaks fail. - **Handoff retests**: pullbacks into the surviving VWAP are alerted as tests of the new trailing support or resistance. ## VWAP Pinch Settings - **Anchor Mode** (default Auto (Swing High & Swing Low)): or Manual (Anchor Times) via **High Anchor Time** and **Low Anchor Time**. - **Swing Length** (default 20): bars each side to confirm a swing; larger picks more significant anchors. - **Source** (default hlc3): the standard VWAP source. - **ATR Length** (default 14): normalizes the pinch width per symbol and timeframe. - **Pinch Threshold** (default 1), **Tightening Threshold** (default 0.5): the ATR widths that arm the pinch and fire the tightening event. - **Convergence Lookback** (default 5): the width must be narrower than this many bars ago, filtering lines that merely run parallel. - **Acceptance Closes** (default 2): closes beyond the pair required to resolve. The same count later flags a failed handoff. - Dashboard and style toggles cover the zone fill, anchor and escape markers, and the fade. ## Frequently Asked Questions ### How is this different from a single anchored VWAP? An [Anchored VWAP](https://www.luxalgo.com/library/indicator/anchored-vwap/) tracks one cohort's average cost from one event. The pinch is a relationship read: two opposing cohorts' averages converging at once, the market trading at both costs simultaneously. ### Why did an active pinch suddenly disappear? Either a new swing re-anchored one line (the geometry changed, so the pinch must requalify against the new pair), or the lines released beyond the threshold without resolving. ### How many acceptance closes should I use? The default 2 demands a held break. One close is fastest but inherits every failed first break; more closes trade later entries for fewer false resolutions. ## Related indicators - [Order Flow VWAP Deviation](https://www.luxalgo.com/library/indicator/order-flow-vwap-deviation/) (VWAP Bands): markdown at https://www.luxalgo.com/library/indicator/order-flow-vwap-deviation.md - [VWAP](https://www.luxalgo.com/library/indicator/vwap/) (Session VWAP): markdown at https://www.luxalgo.com/library/indicator/vwap.md - [VWAP Periodic Close](https://www.luxalgo.com/library/indicator/vwap-periodic-close/) (Periodic VWAPs): markdown at https://www.luxalgo.com/library/indicator/vwap-periodic-close.md - [Rolling VWAP Channel](https://www.luxalgo.com/library/indicator/rolling-vwap-channel/) (Rolling VWAP): markdown at https://www.luxalgo.com/library/indicator/rolling-vwap-channel.md - [VWAP Bands - Event Based](https://www.luxalgo.com/library/indicator/vwap-bands-event-based/) (Anchored VWAP): markdown at https://www.luxalgo.com/library/indicator/vwap-bands-event-based.md - [Anchored VWAP](https://www.luxalgo.com/library/indicator/anchored-vwap/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/anchored-vwap.md - [VWAP Mean-reversion vs Trend Regimes](https://www.luxalgo.com/library/indicator/vwap-mean-reversion-vs-trend-regimes/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/vwap-mean-reversion-vs-trend-regimes.md - [Midpoint/half-back of Session](https://www.luxalgo.com/library/indicator/midpoint-half-back-of-session/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/midpoint-half-back-of-session.md --- Source: https://www.luxalgo.com/library/indicator/vwap-pinch/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/