T29 Anchored VWAP
Overview
VWAP is a popular method in deriving what market participants view as the fair price. It is commonly used to benchmark trading performance against. The typical VWAP is calculated intraday, starting from the fist bar of the trading session. On a chart, the VWAP will normally reset at the start of each session.
The anchored VWAP uses the same calculation as the regular VWAP but includes two main differnces:
You can choose the specific bar to start from - this can be a bar after a news event, a swing high or low, crossing the a previous day high, etc. - any bar after which you would want to gauge bull vs. bear behavior would make sense to anchor a VWAP to
It does not reset - the Anchored VWAP plots from the anchored bar to the end of the chart without resetting. This makes it possible to use it on daily charts as well as intraday charts
Anchor a WAP to any bar on the chart. The VWAP then starts on that bar and is plotted to end the chart.
The study can then be used on any timeframe bars, intraday and daily charts.
Standard Deviation Bands
The study supports up to two bands.
The band width is based on standard deviation with multiplier settings.
Max Number of VWAP’s
The indicator supports a maximum of 12 VWAPS per chart
User Interface
Right clicking the chart will popup a menu with options to add or remove VWAPS from the chart.
