{"id":12169,"date":"2026-05-22T13:38:20","date_gmt":"2026-05-22T13:38:20","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/glossary\/anchored-vwap\/"},"modified":"2026-05-22T13:38:20","modified_gmt":"2026-05-22T13:38:20","slug":"anchored-vwap","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/anchored-vwap\/","title":{"rendered":"Anchored VWAP"},"content":{"rendered":"<p>Standard <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/vwap\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>VWAP<\/a> resets every morning. <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/anchored-vwap\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Anchored VWAP<\/a> lets you start the calculation from any point &mdash; a major news event, an earnings release, a swing low &mdash; and track the <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/volume\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>volume<\/a>-weighted average price from that anchor forward. It has become one of the most popular tools among professional Indian traders for multi-day reference levels.<\/p>\n<div><strong>Key takeaways:<\/strong>\n<ul>\n<li>Anchored VWAP starts from a chosen bar instead of the daily open.<\/li>\n<li>It captures the average price weighted by volume from a meaningful event.<\/li>\n<li>Common anchors include earnings dates, <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/ipo\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>IPO<\/a> listing days, and swing highs\/lows.<\/li>\n<li>Acts as a dynamic support\/resistance line; <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bullish\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>bullish<\/a> above, <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bearish\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>bearish<\/a> below.<\/li>\n<li>Best used on liquid instruments where volume data is reliable.<\/li>\n<\/ul>\n<\/div>\n<h2 id=\"why-anchored-vwap-matters\">Why anchored VWAP matters<\/h2>\n<p>Markets often pivot around significant events. Quarterly earnings, RBI announcements, <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/sector\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>sector<\/a> news &mdash; these create a reference price that traders &ldquo;remember&rdquo; long after the event. Anchored VWAP encodes that memory mathematically. If a stock has been <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/trading\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>trading<\/a> above the anchored VWAP from its last earnings beat, the buyers from that day are still in profit on average &mdash; a bullish backdrop.<\/p>\n<h2 id=\"how-to-set-the-anchor\">How to set the anchor<\/h2>\n<ul>\n<li>Right-click on a key candle in your charting platform and select Anchored VWAP.<\/li>\n<li>Choose the candle of the event &#x2014; earnings, news, swing reference.<\/li>\n<li>The platform draws a curved line forward representing volume-weighted price since the anchor.<\/li>\n<\/ul>\n<h2 id=\"using-anchored-vwap-in-trades\">Using anchored VWAP in trades<\/h2>\n<ol>\n<li><strong>Trend continuation:<\/strong> Buy pullbacks to anchored VWAP in an uptrend.<\/li>\n<li><strong>Failed breakouts:<\/strong> Watch for prices reclaiming an anchored VWAP after a brief breakdown.<\/li>\n<li><strong>Earnings setups:<\/strong> Anchor at last earnings; if a stock is far above this line, it is in a strong post-earnings uptrend.<\/li>\n<li><strong>IPO reference:<\/strong> Anchor at IPO listing; price holding above the anchored VWAP suggests new <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/shareholders\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">shareholders<\/a> are <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/net-profit\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">net profit<\/a>able.<\/li>\n<\/ol>\n<h2 id=\"anchored-vwap-vs-standard-vwap\">Anchored VWAP vs standard VWAP<\/h2>\n<table>\n<tr>\n<th><\/th>\n<th>Standard VWAP<\/th>\n<th>Anchored VWAP<\/th>\n<\/tr>\n<tr>\n<td>Reset<\/td>\n<td>Every day<\/td>\n<td>From the chosen bar<\/td>\n<\/tr>\n<tr>\n<td>Time horizon<\/td>\n<td>Intraday only<\/td>\n<td>Multi-day or multi-week<\/td>\n<\/tr>\n<tr>\n<td>Used by<\/td>\n<td>Day traders<\/td>\n<td>Swing and positional traders<\/td>\n<\/tr>\n<\/table>\n<h2 id=\"anchors-commonly-used-by-indian-traders\">Anchors commonly used by Indian traders<\/h2>\n<ul>\n<li>Date of last earnings or guidance update.<\/li>\n<li>Day of a major sectoral news event (e.g., RBI rate decision day for banking <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/stocks\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>stocks<\/a>).<\/li>\n<li>52-week high or low pivot.<\/li>\n<li>Block deal day or significant promoter transaction.<\/li>\n<li>Initial trading day for IPOs and new listings.<\/li>\n<\/ul>\n<h2 id=\"limitations\">Limitations<\/h2>\n<p>Anchored VWAP needs accurate volume data. On illiquid scrips, the line can mislead. Multiple anchored VWAPs on the same chart can clutter analysis &#x2014; keep only the relevant two or three to avoid paralysis. Combine with trend tools rather than treating the line as a magic level.<\/p>\n<h2 id=\"frequently-asked-questions\">Frequently asked questions<\/h2>\n<div>\n<h3 id=\"can-i-set-multiple-anchors-on-one-chart\">Can I set multiple anchors on one chart?<\/h3>\n<p>Yes &#x2014; many platforms support several anchored VWAPs simultaneously. Use sparingly.<\/p>\n<h3 id=\"is-anchored-vwap-useful-for-long-term-investing\">Is anchored VWAP useful for long-term investing?<\/h3>\n<p>Yes &#x2014; anchor at major lows (e.g., March 2020 Covid bottom) to track the average buyer&#x2019;s position.<\/p>\n<h3 id=\"does-lemonn-support-anchored-vwap\">Does Lemonn support anchored VWAP?<\/h3>\n<p>Yes. It is available in the indicator menu of the Lemonn chart.<\/p>\n<h3 id=\"can-i-anchor-on-a-future-bar\">Can I anchor on a future bar?<\/h3>\n<p>No &#x2014; anchors must be from past data. The line calculates forward from the anchor.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Standard VWAP resets every morning. Anchored VWAP lets you start the calculation from any point &#x2014; a major news event, an earnings release, a swing low &#x2014; and track the volume-weighted average price from that anchor forward. It has become one of the most popular tools among professional Indian traders for multi-day reference levels. Key [&#x2026;]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-12169","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Ashutosh","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"Standard VWAP resets every morning. Anchored VWAP lets you start the calculation from any point &#x2014; a major news event, an earnings release, a swing low &#x2014; and track the volume-weighted average price from that anchor forward. It has become one of the most popular tools among professional Indian traders for multi-day reference levels. Key&hellip;","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12169\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=12169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}