Hey folks, I've been digging deeper into VWAP lately, moving beyond just the daily anchor. I've found that anchoring VWAP to significant swing points or even major news events can reveal a lot more about underlying trend strength and potential reversals than the standard intraday view.
For instance, I recently anchored the 4-hour VWAP to the bottom of a major accumulation phase for $SOL. The price action then spent a good amount of time consolidating *above* this anchored VWAP, which, to me, signaled strong accumulation and a high probability of a bullish continuation. When it finally broke out of the range, it did so with significant volume, confirming the thesis derived from the anchored VWAP.
I'm curious to hear if others have experimented with this. What are your favorite anchoring points for VWAP to identify:
- Mid-term trend shifts?
- Potential reversal zones?
- Areas of institutional interest?
I've also tried anchoring to the start of major sell-offs to gauge the strength of any subsequent bounces. Often, a bounce that struggles to reclaim the anchored VWAP indicates the bears are still in control. Conversely, a strong reclaim can signal the start of a new uptrend.
Any other advanced VWAP strategies or indicators you combine with it? Let's discuss how we can leverage this tool more effectively beyond the basic intraday application. Looking forward to your insights!