To understand the power of AVWAP, you first need to know what the standard VWAP is and where it falls short.
When price hits +2σ on the 15-minute chart anchored to the daily low, scale out 50% of your position. Wait for price to revert to the AVWAP line to re-enter. This churn maximizes your share count without adding risk. maximum trading gains with anchored vwap pdf better
The Anchored VWAP solves this by calculating the average price weighted by volume starting from a user-selected point in time, rather than the market open. This creates a "rolling cost basis" from a specific event. To understand the power of AVWAP, you first
AVWAP is excellent for identifying when a trend is losing steam. To understand the power of AVWAP
Show you at different, common anchor points.