Anchored VWAP (Volume Weighted Average Price) is a technical indicator that calculates the average price of a security weighted by volume, starting from a specific user-selected anchor point — such as a significant high, low, earnings release date, IPO listing date, or major gap — rather than from the start of the trading day as with standard VWAP. By anchoring the VWAP calculation to a meaningful price event, traders can assess whether the price is currently above (bullish) or below (bearish) the average cost basis of participants who entered the market since that anchor point. For example, anchoring the VWAP to the COVID-19 March 2020 low on Nifty 50 shows the average entry price of all investors who participated in the subsequent recovery rally — the price trading above this anchored VWAP confirms that the majority of participants from that event are in profit. In Indian equity markets, Anchored VWAP is used by institutional and advanced retail traders to identify meaningful support and resistance levels, assess institutional positioning, and time entries and exits in individual stocks and indices with greater precision than standard daily VWAP.
For android only
