To turn on VWAP (Volume-Weighted Average Price) on TradingView, you have two primary methods: adding it as a standard indicator for a continuous calculation, or using the drawing tools for an Anchored VWAP that starts from a specific point. Both methods are straightforward and allow you to leverage this valuable technical analysis tool.
Adding Standard VWAP (Continuous Indicator)
The most common way to add a continuous VWAP line to your chart is through TradingView's indicators menu. This method provides a VWAP calculation that resets at the start of each trading session.
- Open the Indicator Search: On your TradingView chart, locate the "Indicators" button at the top panel. It often looks like a small "fx" icon. Click on it.
- Search for VWAP: In the search bar that appears, type "VWAP".
- Select VWAP: From the list of results, click on "Volume Weighted Average Price" (often simply labeled "VWAP").
- Apply to Chart: The VWAP line will instantly appear on your chart, typically in a distinctive color.
This standard VWAP calculates the average price of an asset throughout the day, weighted by its trading volume, giving more importance to prices where more shares were traded. For more details on the indicator, you can refer to TradingView's help resources.
Adding Anchored VWAP (Drawing Tool)
The Anchored VWAP allows you to define a specific starting point on your chart from which the VWAP calculation begins. This is particularly useful for analyzing price action relative to significant events like earnings reports, major lows/highs, or specific news.
To add Anchored VWAP, follow these steps:
- Access Drawing Tools: Look at the chart's left-side panel for the drawing tools menu. It's usually represented by an icon that looks like a diagonal line with dots or a trend line tool.
- Select Anchored VWAP: Click on the small arrow next to the drawing tools icon to expand the list. Scroll down and select Anchored VWAP from the drawing tools list.
- Choose Your Anchor Point: Once selected, click on the chart to choose the specific point from which you'd like to start your calculation. This could be a significant low, high, or a major news event.
- Display Curve: After selecting your anchor point, the volume-weighted average price curve will be displayed on your chart, starting from your chosen anchor.
Understanding VWAP: Standard vs. Anchored
While both are types of VWAP, they serve slightly different analytical purposes. Here's a quick comparison:
| Feature | Standard VWAP (Indicator) | Anchored VWAP (Drawing Tool) |
|---|---|---|
| Calculation | Resets daily; calculates from session open | Starts from a user-defined point |
| Usage | Intra-day bias, execution benchmark, trend confirmation | Event-driven analysis, specific price action analysis |
| Persistence | Continuous throughout the trading day (resets daily) | Persists across multiple days/sessions from anchor |
| Placement | Automatically applied to the entire chart | Manually placed at a chosen point |
Customizing VWAP Settings
Once VWAP is on your chart, you can customize its appearance and parameters. Double-click on the VWAP line itself, or right-click and select "Settings." Here you can adjust:
- Style: Change the color, line thickness, and line type.
- Inputs: For standard VWAP, you might adjust the source (e.g., high, low, close). For Anchored VWAP, the anchor point is defined manually.
- Visibility: Toggle its visibility across different timeframes.
By utilizing both the standard and Anchored VWAP, traders can gain a more comprehensive understanding of an asset's price action relative to its volume, aiding in better decision-making.
