Anchored VWAP

Anchored VWAP (aVWAP) is a VWAP calculation anchored to a specific historical price point chosen by the trader, rather than resetting at the start of each session. It calculates the volume-weighted average price of all trades from the anchor point to the present.

Why anchor point selection matters

The anchor point determines which group of participants the aVWAP represents. By anchoring to a significant event, you identify the average cost basis of everyone who entered since that event.

Common anchor points:

Anchor	Represents
Prior swing low	Average cost of buyers from that low
Prior swing high	Average cost of sellers from that high
Earnings gap	Average cost of participants since the fundamental event
All-time high / low	Long-term average cost of all participants from that extreme
Start of trend	Average cost basis of trend participants
Major news event	Cost basis since the catalyst

aVWAP vs daily VWAP

Daily VWAP resets every session and only reflects that day’s participants. aVWAP accumulates volume across sessions and reflects the average cost basis of a specific cohort.

This makes aVWAP more useful for multi-day setups and understanding where swing traders and institutions are positioned.

aVWAP as support and resistance

Price above aVWAP: participants who entered since the anchor are profitable on average. They are likely to defend the aVWAP on pullbacks (adding to winners). Bullish support.

Price below aVWAP: participants since the anchor are underwater. The aVWAP acts as overhead resistance: underwater longs looking to exit near break-even.

aVWAP retest after breakout: a common setup: price breaks above a key level, pulls back to retest the aVWAP anchored to the breakout point, and uses it as support for continuation.

Multiple aVWAPs

Sophisticated traders plot multiple anchored VWAPs simultaneously: anchored to the swing low, the swing high, and a major structural event. Where multiple aVWAPs cluster, that confluence zone carries stronger support or resistance weight.