--- title: "What Is Anchored VWAP?" description: "Anchored VWAP (AVWAP) accumulates from a user-chosen event, not the daily open. Learn what it measures, common anchors, and how it differs from session VWAP." canonical: https://www.getswoopr.com/technical-analysis/indicators/vwap/anchored-vwap-explained/ source: "Swoopr Investment: https://www.getswoopr.com" --- ## Direct Answer Anchored VWAP (AVWAP) is a VWAP calculation that begins at a user-selected anchor point and accumulates across sessions without a daily reset. It measures the average cost of all participants who bought or sold since that anchor event. Unlike session VWAP, which resets each morning and only reflects the current day, AVWAP provides a multi-session reference level tied to a structurally meaningful price event. # What Is Anchored VWAP? Anchored VWAP applies the same cumulative price-times-volume formula as standard VWAP but starts accumulating from a meaningful price event chosen by the analyst, such as an earnings date or a key structural high or low. It does not reset daily. ## Overview Session VWAP resets each morning and answers: "what is the average cost of today's participants?" Anchored VWAP extends this question across time: "what is the average cost of participants who have traded since a specific meaningful event?" These are different questions with different useful applications. AVWAP was popularized by Brian Shannon and has become a standard tool in technical analysis workflows, particularly for swing trading and position management over multiple sessions. Most modern charting platforms support it as a separate indicator requiring an anchor point input. ## How Anchored VWAP Works The formula is identical to session VWAP: AVWAP = sum(P × V) / sum(V), accumulated from the anchor bar onward. The only difference is the starting point: instead of the session open, it starts at the first bar of the anchor date (or the anchor bar itself if intraday precision is desired). Because AVWAP never resets, it grows its volume denominator continuously. The more sessions that have accumulated since the anchor, the more stable the AVWAP level and the smaller the influence of any single session's volume. An AVWAP anchored two years ago moves very slowly and represents an enormous volume of historical transactions. This stability also means the oldest anchors are least responsive to recent price action. For near-term analysis, anchors set within the last few weeks to few months are typically most relevant. See [how to choose an anchor](https://www.getswoopr.com/technical-analysis/indicators/vwap/how-to-choose-anchored-vwap-anchor/) for selection criteria. ## Common Use Cases A hypothetical example: A company reports earnings on June 1 and the stock gaps up 12% on heavy volume. An AVWAP anchored to June 1 represents the average cost of all participants who bought since that earnings release. If the stock later pulls back and tests the AVWAP line weeks later, that level represents a zone where post-earnings buyers collectively break even. It is a technically meaningful level because it represents real economic stakes for a large population of participants. Other common applications: - IPO AVWAP: anchored to the IPO date, shows average cost of all post-IPO buyers - 52-week high or low AVWAP: anchored to the extreme level that defined the current trend - Major breakout day AVWAP: anchored to the day a stock broke out of a long consolidation - Market-wide cycle high/low: anchored to a broad market turning point for sector or index analysis See [multiple anchored VWAP confluence](https://www.getswoopr.com/technical-analysis/indicators/vwap/multiple-anchored-vwaps-confluence/) for what happens when several AVWAP levels converge at the same price. ## Limitations and Context - **Anchor selection is subjective.** Two analysts anchoring to different events will have different AVWAP levels. The level is only as meaningful as the anchor point is structurally significant. See [anchor selection framework](https://www.getswoopr.com/technical-analysis/indicators/vwap/how-to-choose-anchored-vwap-anchor/). - **AVWAP does not control for share issuance or splits.** Corporate actions between the anchor and today can distort the meaning of historical volume. Most platforms adjust for splits but not all corporate actions. - **Very old anchors move slowly and may lose relevance.** An AVWAP from three years ago reflects the average cost of a participant population that may have mostly exited. The level exists but its economic significance diminishes with time. - **AVWAP is not available on all platforms.** Check your charting platform's indicator library. If unavailable, some traders approximate by anchoring a volume-weighted moving average, though this is not a true AVWAP. ## Frequently Asked Questions ### What does anchored VWAP measure? Anchored VWAP measures the volume-weighted average price of all transactions since a specific anchor event. It answers: "what is the average cost basis of participants who have traded this instrument since the chosen anchor date?" ### How is anchored VWAP different from session VWAP? Session VWAP resets every day at the market open and reflects only the current day's participants. Anchored VWAP starts at a chosen historical event and accumulates across all sessions since then without resetting. ### What events make good anchors for AVWAP? Good anchors are events that brought in significant volume and were structurally meaningful: earnings dates, IPO dates, major gap days, 52-week highs or lows, and broad market turning points. The anchor should represent a real event where many participants entered at that price area. ### Can I use multiple anchored VWAPs at once? Yes. Using multiple AVWAP lines from different anchors simultaneously is common. When two or more AVWAP lines converge at the same price, that confluence level is considered technically significant because it represents a balanced cost zone for participants from multiple distinct time periods. ### Does anchored VWAP work on all asset classes? Yes, AVWAP can be applied to any instrument with reliable price and volume data: equities, ETFs, futures, and some crypto exchanges that report volume. It is less meaningful where volume data is unreliable or unavailable. ## References - [CMT Association: Chartered Market Technician body of knowledge](https://cmtassociation.org/) - [How to Choose an Anchored VWAP Anchor](https://www.getswoopr.com/technical-analysis/indicators/vwap/how-to-choose-anchored-vwap-anchor/) - [Multiple Anchored VWAPs Confluence](https://www.getswoopr.com/technical-analysis/indicators/vwap/multiple-anchored-vwaps-confluence/) - [Does VWAP Reset Every Day?](https://www.getswoopr.com/technical-analysis/indicators/vwap/does-vwap-reset-every-day/) ## Disclaimer This page is for educational purposes only and does not constitute investment, financial, or trading advice. VWAP and related indicators reflect historical price and volume data and do not guarantee future results. Any worked examples use hypothetical figures only. Swoopr Investment is not a licensed investment advisor; consult a qualified professional before making trading or investment decisions. S By [Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/) The Swoopr Editorial Team researches and writes our technical and fundamental analysis education content, drawing on established market-structure and indicator methodology from primary industry sources. Content is reviewed for accuracy before publication. Questions or corrections? See our [corrections policy](https://www.getswoopr.com/legal/corrections-policy/) or read more about our [editorial standards](https://www.getswoopr.com/legal/editorial-policy/).