Trading with VOLUME: Ways to Use VWAP & Anchored VWAP
Anchored VWAP (Volume-Weighted Average Price) is a technical analysis indicator that calculates the average price of a security, weighted by volume, starting from a specific point (the anchor) on the chart, allowing traders to analyze price action from a particular event or time frame.
Here's a more detailed explanation:
What it is:
Anchored VWAP is a variation of the standard VWAP, which calculates the average price of a security, weighted by the volume traded throughout a specific period.
How it differs from standard VWAP:
The key difference is that Anchored VWAP allows traders to set a specific starting point (the anchor) for the calculation, rather than the beginning of the trading session.
Anchor Point:
This anchor point can be any significant event, time, or price level, allowing traders to analyze price action from that particular point forward.
PGDM in finance, having 5+ experience in Equity, commodities , forex analysis and trading.
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