AlphaTrends Anchored VWAP – Overview
The AlphaTrends – Anchored VWAP indicator brings us valuable insight into the psychology of the market. Price has memory. That is a key concept in technical analysis. One of the basic tenets of the study of price history is “support broken, tends to act as resistance” the opposite is also a technical analysis maxim, “resistance broken, tends to act as support.” Have you ever considered why you see this play out on a chart so often?
AlphaTrends – Anchored VWAP is used in an attempt to understand the collective reasoning and psychology of the participants so we can objectively prepare our trading plan.
Available on the TradeStation TradingAPP Store
In the case of traditional (horizontal) support being broken and then acting as subsequent resistance, the more participants who are “anchored” to a price level, the greater a move will become when there is a break of that price point.
This powerful indicator helps you gain an understanding of who controls the market trends by blending three components (Price, Volume and Time) together to reveal a true look at trends on any time-frame.
In a trending market, the classic horizontal support and resistance levels are not always obvious. If we want to measure price memory from an “event” the AlphaTrends – Anchored VWAP indicator is the most effective means to accomplish this task.
AlphaTrends Anchored VWAP – Applications
- Three Anchored VWAPs can be controlled using a keystroke and left mouse click on any bar within the chart.
- Anchored VWAPs can provide support and resistance levels when placed in specific areas on the chart called “Events”.
- A quick and easy way to visualize who is in control, buyers or sellers
- Anchored VWAPs can be moved by holding the same keystroke and left mouse click on any new bar within the chart.
- Experiment with various anchor points in your targeted markets and stocks and you will immediately recognize its value
AlphaTrends Anchored VWAP – Configurable Inputs
There are currently no configurable inputs for the AlphaTrends – Anchored VWAP.
AlphaTrends Anchored VWAP - Display Information
- Red VWAP: Alt-Key and Mouse Click
- Yellow VWAP: Shift-Key and Mouse Click
- Blue/Cyan VWAP: Ctrl-Key and Mouse Click
Addional Information
- AlphaTrends – Anchored VWAP can help determine the trend bias based on its direction.
- A rising VWAP indicates an up-trend and positive price action.
- A declining VWAP indicates a down-trend or negative price action.Under the “Inputs” tab is where you will find the “Configurable Inputs”
- A flat VWAP indicates a neutral direction for that time frame