To maximize gains, use multiple AVWAPs.
Brian Shannon’s Maximum Trading Gains With Anchored VWAP details how to use Anchored VWAP (AVWAP) to blend price, volume, and time, defining "fair value" based on significant market events. The methodology focuses on identifying key anchor points—such as earnings, gaps, or highs/lows—to identify high-probability pullbacks and trend reversals. For comprehensive details and examples, visit Alphatrends Amazon.com maximum trading gains with anchored vwap pdf
However, the standard VWAP resets at the start of every trading session. For swing traders and investors, this creates a "blind spot." A stock may be in a strong uptrend, but a gap up or down can render the daily VWAP irrelevant for understanding the trend's structural integrity. The market does not "forget" price history simply because a new trading day begins; neither should our indicators. To maximize gains, use multiple AVWAPs
Identify a strong breakout and anchor the VWAP to the starting candle of that move. In a bullish trend, wait for the price to pull back and touch the AVWAP line. If the price bounces with increased volume, it signals that institutional buyers are defending their average entry price, offering a high-probability long entry. Identify a strong breakout and anchor the VWAP