Based on Brian Shannon's AVWAP - This indicator anchors vwap to the highest high, lowest low and highest volume bar of a user defined lookback period.
In the chart example above on AVAX, the lookback period is set to 90 days - The blue line depicts AVWAP from the highest bar in in the last 90 dats - The purple Line is AVWAP from the lowest bar in the last 90 days - The golden line is AVWAP from the highest volume bar in the last 90 Days
These levels act as a price magnet and strong levels of support and resistance. I use them to identify chart locations for where I want to do business and look for trade setups.
Unlike moving averages, AVWAP will maintain it's chart position no matter the chart resolution. One way to take advantage of this is to wait for price to get to one of these levels, go to lower timeframes and find low risk setups based on your trading strategy.
You can customise the look and feel and which anchors you want displayed. You can use multiple instances with varying lookback periods to display shorter and longer term levels simultaneously
Hi nice work. I turn on the labels but they do not show up on the charts ? (both day and night mode).
alicnsz
⋅
thank you thank you thank you thank you thank you thank you thank you!!!!!!
alicnsz
⋅
@alicnsz, I wish there would be version 5 of this :(
PinoyTrader0929
⋅
Hello, thank you so much for this contribution of yours to the TV community. I use this script on the range bar chart. The timeframe has no significance for range bars, and i only use the look back period to configure my setup. Is there a way to clean up the code so that it is not dependent on time but only the lookback period? Thank you again
santhozp
⋅
Excellent Work @aj7919 , this will be of great help. One request - Would you be able to add an option for anchoring to be made from high made in the given number of days? In say 50 days, for one stock the high might be on 10th Feb and for other it could be on 3rd Feb.
elScipio
⋅
@santhozp, Hi - thats exactly what this indicator does. chrs
@aj7919, I did some copy and paste magic and got it to display high/low bands instead of single lines, then I hid the lines using display.none. And Oh Gosh does the price respect these bands. aka from the day peak it now plots only a gray band using "fill" between the vwap of the highs and vwap of the lows, with the original vwap line of the hlc3 in the middle of it. aka gray bands straddling the original lines. Very nice. Maybe an idea for your version 2 ;-) My next challenge is to get it to auto-display the 1 day vwaps on the 1minute chart, 2 day vwaps on 2minute chart, 30 day vwaps on the 30minute chart, etc
elScipio
⋅
@thisismodernity, Sounds interesting! Would be great if you could share with the community as well .. my only warning is do not blindly buy / sell at vwap - wait for PA to tell you it wants to react in your favor first. If you’re looking at intraday then the M1 works well.