Anchored VWAP with Deviations

Anchored VWAP (Volume Weighted Average Price) is a technical analysis indicator, presented here as a Ninjatrader 8 Drawing Tool, that calculates the average price of a security, weighted by volume, starting from a specific point (the "anchor") chosen by the trader or analyst. This is different from the standard VWAP, which typically starts at the beginning of the trading day and ends at the close.
Manufacturer: nt8indicators
SKU: AVWAP
$9.90

Key points about Anchored VWAP:

  • Anchor Point: You can select any point in time (such as a specific high, low, earnings report, or another significant event) as the starting point for the calculation.
  • Calculation: Like regular VWAP, it multiplies each transaction price by the volume traded at that price, sums these values from the anchor point, and divides by the total volume from the anchor point onward.
  • Usage: Anchored VWAP is used to assess fair value since a given event, identify support/resistance, or analyze price action after significant market moves.
  • Visual: On charts, it is typically shown as a line starting from the anchor point and continuing forward.


Why use Anchored VWAP?

  • It helps traders analyze the average price since a significant event rather than just the start of the day.
  • It provides context-specific support and resistance levels.
  • It is used by institutional and retail traders to track the "true" average buy/sell price after key events.

Summary:
Anchored VWAP is a flexible version of VWAP that starts from a user-defined point, allowing more targeted analysis of price and volume behavior in financial markets.

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