📖Anchored Volume-Weighted Average Price [AVWAP]
Pay attention to AVWAP as another key level in your trading plan
Overview
Anchored Volume-Weighted Average Price [AVWAP] is used to determine the fair market value of an asset.
The volume-weighted average price is taken over a user-specified period, typically based on a high or low pivot or trading session start time, and the resulting AVWAP line then serves as a critical support | resistance level that price will eventually retest.
AVWAP Line
[A] Default [Off]. Select the AVWAP source from the drop-down box. Default [hlc3] which means [High + Low + Close] / 3.
Use the color selector box to change the color of the AVWAP line.
[B] AVWAP Start [Option 1]: Use the date and time selectors to select the Start position of the AVWAP line.
AVWAP Start [Option 2]: Change the AVWAP Start position directly on the chart by moving the vertical line that appears to a specific candle [e.g., pivot high, pivot low, day/week start].
First, click on the AVWAP line, then drag the vertical AVWAP position line on the chart to the desired candle.
AVWAP Support | Resistance Zone
The AVWAP Support | Resistance Zone is a horizontal zone based on the latest calculated AVWAP price and can be plotted as another key level to watch alongside Local Support / Resistance.
[C] Toggle [AVWAP Support | Resistance] to display a horizontal support | resistance zone.
When price action is above the AVWAP, the horizontal AVWAP support | resistance zone acts as support with bullish zone coloring.
When price action is below the AVWAP, the horizontal AVWAP support | resistance zone acts as resistance with bearish zone coloring.
Example 1: Anchored VWAP Line with AVWAP Support | Resistance Zone
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