HETMANCAPITAL
PLJoin the Club

Anchored VWAP

Trader's Glossary · Indicators

Anchored VWAP

Definition. VWAP calculated from a chosen moment, e.g. an important low, high or data release, rather than from the start of the session.

How it works

It shows the average trade price of all participants who entered the market since the chosen event. It lets you judge whether that group is “in profit” or “underwater”.

Example

An anchored VWAP from the Fed statement shows the average trade price since the decision. Price returning to that line is a test of whether the reaction to the decision is holding.

What to watch out for

The choice of anchor point is subjective. The same method with different points gives different lines.

This is the tick chart in the Hetman Terminal (Hetman Tempo). Screenshot from the Hetman Index (IHA) – a training instrument, simulated data.
This is the tick chart in the Hetman Terminal (Hetman Tempo). Screenshot from the Hetman Index (IHA) – a training instrument, simulated data. See all the Hetman Terminal tools →

♛ The Hetman Terminal is part of Club: live for Dow Jones from the Bishop plan, 6 markets (Dow Jones, S&P 500, Nasdaq, gold, crude oil, Bitcoin) and automatic detection of order flow events from the Rook plan. A session on the ♛ Hetman Index (training, simulated data) in the full panel comes with the Knight plan and above. Compare the plans →

See also

VWAP, VWAP deviation bands, FOMC (Fed decision).

More in Hetman Capital Club

You'll find the full explanation with graphics, examples and exercises in the 📖 Order flow encyclopedia space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).

Educational content, not investment advice.