Every trader has been there: You spot a great breakout, enter the trade, and then watch helplessly as the price reverses right against you. The problem isn't always your strategy—often, it’s your reference point .
For stocks post-earnings or post-IPO. The setup: Anchor to the first day of trading after the report. The gain: Institutions accumulate over weeks. Buying near the Anchored VWAP on the 4-hour chart allows you to ride the trend for 20-30% moves. maximum trading gains with anchored vwap pdf
. Unlike the standard VWAP which resets daily, the AVWAP allows you to calculate the volume-weighted average price from a specific, significant event to understand the "psychology of the average holder" since that moment. 1. Identify "Psychologically Significant" Anchor Points Every trader has been there: You spot a
: A comprehensive 8-page user guide on Scribd detailing support/resistance planning using AVWAP. The setup: Anchor to the first day of
AVWAP represents the "true cost" of the stock for everyone who bought since the anchor point. If price is above AVWAP, those holders are in profit (support). If below, they are at a loss (resistance).