What it means
Anchored VWAP calculates volume-weighted average price from a SPECIFIC starting event rather than the session open. The 'anchor' can be: earnings release date, IPO date, prior swing low, key macro event. From the anchor point forward, the indicator computes running VWAP. The level represents the institutional cost basis from that moment — particularly meaningful around major events.
Why it matters
Anchored VWAP from significant events provides high-conviction reference levels. The VWAP from a stock's earnings beat is the institutional cost basis for everyone who bought the news — that level often acts as strong support on subsequent pullbacks. Similarly for VWAP from major lows or breakouts.
How to use it
Identify a significant event for the asset (earnings, IPO, key macro). Anchor VWAP from that date. Treat the level as dynamic support/resistance. Particularly powerful for stocks post-earnings — the anchored VWAP from earnings often holds for weeks.
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