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    cTrader Anchored VWAP


    Limited Support (Read Me)

    The cTrader Anchored VWAP (Volume-Weighted Average Price) indicator assesses the average price at which a symbol has traded over a specific period of time, this is defined by the user dragging a vertical line on the chart to anchor the start of the calculation. The indicator is calculated by adding up the products of the price and volume for each trading period and then dividing by the total trading volume over that period.
    Type: Windows & macOS (cTrader Platform)
    Current version: 1.0
    Updated: Saturday, 12 August 2023
    Author: ClickAlgo Team

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    The concept of anchoring the VWAP to specific reference points or events has been developed and popularized by many traders, analysts, and software developers in the trading community. It works where the indicator's calculation is anchored or started from a specific reference point rather than the traditional start point (usually the beginning of the chart or trading period). The starting point of the VWAP calculation is defined by the user by dragging a line left or right on the chart which provides insights into how price movements or trends have evolved since that particular reference point.

    You might drag the line and anchor the VWAP to a significant news event, an earnings announcement, or a major market shift as this could help traders and analysts better understand how the VWAP has performed and interacted with price movements since that anchor point.

     

    cTrader Anchored VWAP Indicator

     

    How to Use the Anchored VWAP

    To get started using the A-VWAP indicator, you first need to attach the indicator to a chart, you can scroll down the page for instructions on how to install and attach the indicator to a chart. The A-VWAP indicator will allow you to drag the verticle anchor line to any date or time in the past to set the starting point for the VWAP to be calculated taking into account the price and volume for that trading period.

     

    Choosing the Right Anchor Point

    The chosen anchor point must align with your trading strategy, serving as a significant and pertinent price reference, so when deciding on an anchor point, take into account the following key factors:

    1. Pivot Point: Pivot points are used in technical analysis to serve as a viable anchor point for the A-VWAP indicator, these points are derived from the highs, lows, and closing prices of the preceding day, aiding in the recognition of potential support and resistance levels.

    2. High or low points: This popular method uses a peak or trough as the anchor point and this could include a swing high or low, a pivotal support or resistance threshold, or any level indicative of a pivotal shift in price dynamics.

    3. Time-based reference point: This alternative strategy involves employing a distinct date or time as the anchor point, an example would be when you might choose to use the commencement of the trading week, month, quarter, or year as the anchor point for computing the A-VWAP from that juncture onward.

    4. Event-based reference point: A reference point based on events could include an economic report, earnings declaration, or any notable incident with market implications.

     

    How to Use Multiple AVWAP Indicators?

    If you wish to attach multiple Anchor VWAP indicators to the same chart with different anchor points and settings, you just need to make sure that the Line Identifier setting is a unique value like line-1, line-2 etc. The image above shows three different anchors VWAP indicators that have been attached to a EURUSD chart.

     

    Indicator Settings Explained

    When you attach the indicator to a chart or when you edit the indicator settings you will have various adjustments that you can make.

    • User Guide - This displays a popup on the chart with a button that will take you to this page for help.
    • VWAP Price - This is the price used in the calculation for the indicator.
    • Line Color - This is the colour of the vertical line that you can drag left or right (the anchor).
    • Line Identifier - This is the unique identifier for multiple VWAP indicators on the same chart.
    • Line Thickness - This is the thickness of the verticle line.
    • Line Style - This is the style for the verticle line.
    • Hide Line - This shows or hides the verticle anchor line.

     

    How To Install & Remove

    First, make sure you have the cTrader trading platform installed and then unzip the file and double-click on it to automatically install it onto the platform.

     

    Any Questions?

    If you have any questions or if there are any bugs, please first search our product help forum for the answer, if you cannot find it, post a new question.

     

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