Anchored VWAP

VWAP
Volume weighted average price

It is an intraday indicator

HDFC Bank

Total of
value of
shares
Time Volume Price traded
9:15 1000 1400 1400000
9:16 1400 1390 1946000
9:17 1900 1375 2612500
9:18 2100 1350 2835000
9:19 1000 1380 1380000
9:20 900 1400 1260000
9:21 1900 1350 2565000
9:22 200 1370 274000
9:23 2900 1365 3958500
9:24 3900 1302 5077800
9:25 4000 1333 5332000
9:26 400 1300 520000
9:27 1900 1311 2490900
9:28 1500 1306 1959000
9:29 1300 1369 1779700
9:30 1100 1377 1514700

1346.90146

Why is VWAP such an important number?

When institutions want to purchase shares, they have institutional brokers to do that for them.

A broker's job is multi-fold

1. They have to ensure that the shares are procured
2. They have to be able to procure the shares at the lowest price possible
VWAP becomes a level which brokers try not to stray too far from while purchasing shares for institutional clients

Because of this, the price has a tendency to take support at the vwap when the trend is up and resistance at the vwa

Brian Shannon

How do I anchor VWAP?

I try to find a trend reversal or a tred starting point and I place my anchored
E.g. in order to find out the potential level of resistance, anchor the vwap at its highest high since the downtrend be
And lowest low for support
(Watch the video for more details)

Handoff
If the price goes too far away from the anchored vwap, you can handoff a new anchoring point at the latest touchp
 1300

hat for them.

g shares for institutional clients

nd is up and resistance at the vwap when the trend is down

hest high since the downtrend began

choring point at the latest touchpoint of the larger timeframe