
Anchored VWAP Channel Indicator
Platform: MT4 Type: Channel Last update: October 16, 2024The Anchored VWAP Channel Indicator displays, as the name suggests, a channel based on the volume-weighted average price for a specific time period, but starting from a user-selected point. This indicator is pretty unique and provides solid signals. Long trades should be placed when the price is above the channel, and conversely, short trade opportunities take place when the price dips below the channel.
Starting point explained
As we already mentioned, the Anchored VWAP Channel Indicator signals are based on the user-specified starting point. It is marked as the blue target icon. You can move it to the right or left and that way specify the starting point of the indicator. As a result, signals will be recalculated and the channel will adjust accordingly.
Example trade with the Anchored VWAP Channel Indicator
Below is the screenshot of an example trade with the Anchored VWAP Channel Indicator.
As you can see on the chart above, the price entered an accumulation phase just above the upper band of the Anchored VWAP Channel indicator, and then a powerful breakout to the upside took place.
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