Auto-anchored VWAP
A VWAP that automatically resets from a significant reference point — like the start of a session or a major swing high/low — instead of a manually chosen start time.
What the numbers mean
Instead of a period, the setting is the anchor point the calculation starts from — chosen automatically at a significant bar such as a major high, low, gap or earnings date.
- Anchor — session open, a swing high or low, an earnings date, or a gap
- No period: the calculation runs from the anchor to now
- Different anchors on the same chart produce different, equally valid lines
How it is used
Used to measure the average price paid by everyone who has traded since a specific event, which makes it a reference for whether that cohort is collectively in profit or loss.
- Anchored at a major low → the average price paid by everyone who bought the recovery
- Anchored at earnings → whether the post-earnings cohort is in profit
- Price reclaiming an anchored VWAP → that cohort moving back to breakeven, often a support level
How it relates to everything else
Anchored VWAP converts VWAP from an intraday tool into a swing and position tool by replacing the daily reset with a chosen event. Its usefulness depends entirely on the anchor being a genuinely significant bar — which is a judgement call, and the main way it gets misused.
- VWAP without the daily reset
- Anchor choice determines the answer — the main source of bias
- Pairs with volume profile, which answers the same “what price” question differently
What to watch for
The choice of anchor determines the answer, and 'significant' is a judgement call. Different anchors on the same chart can support opposite conclusions.