Anchored VWAP 4

The Anchored VWAP 4 indicator allows traders to plot four independent Volume Weighted Average Price lines anchored to specific historical points in time to identify significant institutional support and resistance levels.

Usage

The Anchored VWAP 4 is primarily used to identify how the average price, weighted by volume, has evolved since a specific market event, such as a swing high, swing low, or earnings release. By anchoring the VWAP to these key pivot points, traders can visualize areas of supply and demand that remain relevant to current price action.

Typical use cases include:

• Trend Confirmation: Observing if price remains above or below the anchored VWAP to determine the prevailing trend from a specific starting point.
• Support/Resistance: Using the anchored lines as dynamic levels where price might bounce or reject.
• Multiple Timeframe Analysis: Setting anchors on different significant dates (e.g., yearly start, monthly high, recent news event) to see where various volume-weighted interests converge.

Details

The indicator calculates the VWAP by cumulatively summing the product of the selected price source and volume, divided by the cumulative volume, starting exactly at the user-defined timestamp. Unlike a standard VWAP which resets daily, these anchored versions persist across the chart until the end of the data series.

Each of the four VWAPs operates independently, allowing for a multifaceted view of market structure. The implementation uses precise timestamping (Year, Month, Day, Hour, Minute) to ensure the anchor begins exactly when the user intends.

Settings

• VWAP Toggle (1-4): Enables or disables the visibility of the respective anchored VWAP line on the chart.
• Source (1-4): Determines the price input used for the calculation (e.g., hlc3, close, hl2).
• Anchor Date & Time (Year, Month, Day, Hour, Minute): Sets the specific starting point for each calculation. The VWAP will begin accumulating volume and price data from this exact moment forward.

FAQ

How do I access Anchored VWAP 4?

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

Can I anchor the VWAP to a specific price bar?

Yes, by inputting the exact date and time coordinates of a specific bar into the settings, the indicator will anchor its calculation to that point.

Why does the VWAP line look like a flat line at the start?

At the very beginning of the anchor point, the calculation only has one bar of data. As more bars pass and volume accumulates, the line will begin to react more dynamically to price movements.