Find a strong directional move (impulse wave). Anchor your VWAP to the start of that impulse.
The Anchored VWAP allows the trader to select a starting point (the "anchor") from which the calculation begins. Instead of resetting every morning, the AVWAP accumulates volume and price data from the anchor point to the current bar. maximum trading gains with anchored vwap pdf
Stock: XYZ
Anchor: Swing low at $50.00 on high volume (October 1)
Action: Price rises to $65, then pulls back to AVWAP at $58.20 (October 15)
Entry: $58.30 (bullish reversal candle)
Stop: $49.80 (below anchor)
Target 1: $66.00 (prior high)
Target 2: $74.00 (measured move = $50→$65 = $15, add to $58 = $73)
Result: 5% risk, 15–27% gain → 3:1 to 5:1 R:R Find a strong directional move (impulse wave)