Advanced VWAP Anchors for Identifying Mid-Term Trend Shifts

Hey fellow chartists,

Been digging deeper into VWAP lately, moving beyond just the daily anchor. I'm finding that anchoring VWAP to significant swing highs/lows on, say, the 4H or Daily charts can provide some really insightful levels for mid-term trend identification. It's not just about intraday scalping; using these longer-term anchors can help spot potential reversals or continuations that daily VWAP might miss.

For example, on ETH, I recently anchored VWAP to the major low from early March. Watching how price interacted with that 4H VWAP line over the past few weeks has been pretty telling. When price consistently traded above it, it acted as solid support, validating the uptrend. Conversely, a decisive break below it, followed by rejections on the upside, signaled a potential shift.

I'm curious to hear if anyone else is experimenting with different anchoring points for VWAP or using it in conjunction with other indicators like Volume Profile to confirm liquidity levels around these VWAP anchors. Are you seeing similar results? What timeframes are you typically using for these longer-term anchors?

Would love to discuss strategies and see if we can refine this approach further. Let's share some charts or insights!

Interesting approach! I've also been experimenting with longer-term VWAP anchors, and I agree that anchoring to significant swing points on higher timeframes can unlock a lot of hidden potential.

Specifically, I've found that when price consistently respects or rejects an anchored VWAP from a major swing low (or high), it often signals strong conviction in the prevailing trend. What are your thoughts on how to best identify those "significant" swing points to anchor from? Is it purely based on price action magnitude, or do you factor in volume spikes or news events around those points?

That's a fantastic point about identifying those "significant" swing points! I've been wrestling with that too. For me, it's a combination. Of course, the magnitude of the price move from that low/high is a big clue. But I also pay close attention to the volume associated with that swing. A massive volume spike at a potential swing low, followed by a clear bounce, makes that anchor point much more compelling. News events can definitely add weight, but I try to focus on price and volume first, as they are the raw data.

Have you found any specific indicators that help confirm the significance of a swing point before you even consider anchoring VWAP?

One thing to add to the discussion on identifying significant swing points for VWAP anchoring:

I've found that looking for a clear change in character after a swing can be a strong confirmation. For instance, if price makes a significant low, bounces, then breaks above a short-term resistance level with conviction, that initial low becomes a much more reliable anchor point for a bullish mid-term VWAP. It's not just about the size of the swing, but what happens after it.

What do you guys think about using this "change in character" concept as a filter for selecting anchor points?