In a simple word, Anchored VWAP (AVWAP or Anchored Volume Weighted Average Price) is its own Select price movement indicator.
VWAP indicator only works in the below 1-hour candle chart. If you set 1 hour or more candle chart then the VWAP indicator will disappear But using AVWAP indicator you can set time frame 1 minute to 1 month. Also, you can set this Indicator starting point also.
AVWAP indicator Setting
In the different software its little difference to setup. Go to studies and search for ‘anchored VWAP’.
- Field: This is for what price you want to take for calculation of this indicator line.
- Anchor Date: Using the AVWAP indicator, you can choose a particular date and time, where AVWAP indicator Line will start. So select date, so that indicator will start from this date.
- Anchor Time: after selecting the date then here you can select your required time, so that indicator line will start from the selected time.
- Standard deviations 1, 2, & 3: this is the standard deviations line of this indicator. If you want to use then Check this.
- Shading: if you use standard deviations, then this will shade between the upper and lower lines.
- WVAP: the color setting of the AWVAP indicator line.
- 1,2,3 standard deviations: is the color of standard deviations lines.
- Panel: This is the Panel to this indicator line.my recommendation to use this as it is.
- Y-axis: This is for AVWAP indicator Line parameters. You can change it as you need.
Anchored VWAP indicator trading strategy
- Anchored VWAP is not similar to the VWAP indicator.
- This indicator gives you to set your own buying or selling price movement. You can set where you need to calculate this indicator.
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