Anchored Indicators 101
What is Anchoring?
Most indicators, such as moving averages or Bollinger Bands®, are typically calculated using all of the candles on a chart. That said, some indicators, such as those with cumulative nature, like Volume Weighted Average Price, make more sense if they begin from particular candl...
Anchored Volume-by-Price show what price levels experienced the most volume. Unlike traditional volume that’s plotted on the X-axis below the price chart, price-by-volume is plotted on the Y-Axis on the right side of the chart, with each bar representing the volume at the associated price. The fu...
Anchored VWAP (Volume Weighted Average Price)
Anchored Volume Weighted Average Price, or AVWAP, is a technical indicator developed by Brian Shannon from AlphaTrends. Since markets tend to have an anchoring bias after significant events, such as earnings, FDA announcements or Federal Reserve interest rate changes, traders often find themselve...