Anchored VWAP
Definition
Anchored VWAP is a volume-weighted average price that starts from a candle you choose, such as an earnings gap or a swing low, instead of resetting at each day's open.
Detailed Explanation
Session VWAP answers one question: what is the average price paid today? Anchored VWAP answers a different one: what is the average price paid by everyone who bought since this event? If price sits above the line, the average buyer since the anchor is in profit. If it falls below, that buyer is losing, which can change how people behave. The line is only as useful as the anchor, so traders pick moments with obvious news or volume and avoid candles that only look important in hindsight. It runs across days, so a trade based on it often carries overnight risk.
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