The VWAP stands for volume-weighted average price. The VWAP is primarily used for intraday trading, while the anchored VWAP allows you to use a similar indicator for longer-term trades. Although the anchored VWAP is the most effective for swing trading, the regular VWAP is best for day trading. Therefore, the anchored VWAP is helpful for long-term and short-term trading strategies. The anchored VWAP allows you to determine support and resistance levels starting from a specific time on the chart. Key TakeawaysĪnchored VWAP (Volume Weighted Average Price) is a technical analysis tool that is used to identify potential support and resistance levels in financial markets.Īnchored VWAP is calculated by taking the average price of a security, weighted by the volume traded at each price level over a specific time period, and is often used by traders to identify potential entry and exit points in the market. The anchored VWAP may also help traders identify trend reversals. The anchored VWAP on ThinkorSwim is an excellent indicator that can help you identify support and resistance levels on various timeframes.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |