Standard VWAP (volume-weighted average price) resets each session and answers "what's the average price traders paid today?" Anchored VWAP lets you choose the starting point — anchoring the calculation to a specific event: an earnings release, a major swing high or low, a gap, a Fed day. From that anchor forward, it tracks the true average price paid.

Why anchoring matters

The anchor point makes VWAP contextual. Anchor to a significant low, and the anchored VWAP shows the average cost of everyone who bought since the bottom — a meaningful support/resistance level tied to a real event, not an arbitrary daily reset. Price above it means buyers-since-the-event are, on average, in profit; below, they're underwater — which shapes their behavior.

Where it shines

Anchored VWAP is powerful around catalysts: anchor to an earnings gap and watch whether price holds above the post-event average (bullish acceptance) or falls below (rejection). Anchor to a swing high in a downtrend to find the level where trapped buyers may sell into strength. It turns "average price" into "average price that matters."

Regular VWAP asks about today. Anchored VWAP asks about the moment that actually changed the story.

Using it

Anchored VWAP is most useful as a dynamic level tied to a specific, meaningful event — a reference for where the marginal buyer or seller sits. Combined with volume profile and structure, it grounds levels in real participation rather than round numbers. Like all levels, it's a place to watch for a reaction, not a guarantee of one.