Standard VWAP resets every morning, but sometimes the move you are tracking started days or weeks ago. That is why we have added Anchored VWAP with Bands on FYERS.
What is Anchored VWAP?
Anchored VWAP (AVWAP) lets you choose exactly where the volume-weighted average price calculation starts. Instead of waiting for the market open, you can "anchor" it to a specific event, like a swing high, a low, or a gap-up.
Anchored VWAP vs. Anchored VWAP with Bands
While both tools help you find the average price, they serve different purposes:
Anchored VWAP: This is a single line. It shows you the exact average price since your anchor point. It is great for finding a specific level where the price might find support or resistance.
Anchored VWAP with Bands: This adds volatility lines above and below the center average. While the single line tells you the average, the bands show you a "zone" of how far the price has deviated from that average.
The bands help you see when a stock is getting overextended. It turns a single price point into a range, which is often more realistic in live trading.
How to read this
Center Line: This is your average price from the anchor point.
Upper Bands: These act as resistance zones. If the price hits these, it is statistically "expensive" compared to the volume since your anchor.
Lower Bands: These act as support zones. If the price pulls back to these levels, it shows the trend is reaching a point where buyers might step back in.
Example
If a stock gaps up 5% on Monday, you can anchor the AVWAP to that Monday morning. By Thursday, you can see if the stock is still trading above its average price.
With the single line, you are just waiting for a touch. With the Bands active, you might see that the price didn't quite touch the center line but found support at the -1 Standard Deviation band. This tells you the trend is strong enough that buyers are jumping in before it even reaches the actual average.
Try it out
Find it in the Indicators menu on FYERS Web & App. Pick a major price point on your chart, anchor the tool there, and see how the bands help you define your entry and exit zones more clearly.