This article serves as a comprehensive guide—a "PDF better" resource—on how to maximize your trading gains using AVWAP strategies. What is Anchored VWAP?
Maximum gains often happen when price coils tightly between two distinct technical levels before an explosive breakout.
| Chapter | Topic | Why It Maximizes Gains | | :--- | :--- | :--- | | 1 | How to set AVWAP on TradingView, ThinkorSwim, and MT4/5 | Saves time; prevents setup errors | | 2 | The 7 Golden Anchors (Earnings, Gaps, Pivots, etc.) | Targets the exact levels institutions use | | 3 | AVWAP + RSI Divergence | Identifies reversals at anchored levels | | 4 | AVWAP for Options Sellers | Locates high-probability short strikes | | 5 | Backtesting Log: 500 Trades with AVWAP vs. Standard VWAP | Proves a 34% improvement in profit factor | | 6 | Journal Template: Recording your anchors | Forces discipline; tracks performance | maximum trading gains with anchored vwap pdf better
The A-VWAP often acts as support, allowing you to enter the trend at a lower risk price point, riding the momentum initiated by the event. 2. High-Volume Swing Points (Swing High/Low) Major market turns occur at, well, major market turns.
Standard VWAP calculates the average price an asset traded at throughout the day, based on both volume and price. It is highly effective for intraday traders but resets to zero at the start of every new trading session. This article serves as a comprehensive guide—a "PDF
Watch for the price to compress tightly just underneath this AVWAP line.
After an extended move, price pulls back to the 0.618 Fibonacci retracement level while simultaneously touching a rising AVWAP line. This confluence—two independent methods pointing to the same level—significantly increases the probability of a successful bounce. | Chapter | Topic | Why It Maximizes
When a stock breaks out on massive volume following an earnings report, anchor your VWAP to the launch candle. As the stock rallies and eventually pulls back, institutional buyers frequently step back in at their original average cost basis. Wait for the price to touch the Anchored VWAP, look for a bullish reversal candle, and enter long with a stop-loss just below the AVWAP line. 2. The Double Anchor Pinch