Which do you currently use to run technical analysis?
Embrace the power of anchoring, study the principles diligently, and integrate AVWAP into a comprehensive trading plan. That is the path to elevating your trading to a professional level and achieving maximum gains.
While the complete book is not legally available as a free PDF, the author and other experts provide excellent free resources to help you learn the fundamentals of AVWAP:
The Anchored Volume Weighted Average Price (AVWAP) is widely considered the "absolute truth" of market supply and demand. Popularized by Brian Shannon in his book Maximum Trading Gains with Anchored VWAP maximum trading gains with anchored vwap pdf download
While powerful alone, the Anchored VWAP's effectiveness is amplified when combined with other technical analysis tools. To truly maximize gains, traders should look for confluence.
For users of ProRealTime, the platform allows you to create a VWAP anchored to a specific date. Users can set the calculation's start to a particular date in YYYYMMDD format, allowing for event-based analysis.
The Anchored VWAP, as taught by Brian Shannon, is more than just another line on a chart. It is the perfect combination of price, time, and volume, offering a truly objective measure of market sentiment. By moving beyond the daily reset of traditional VWAP, the AVWAP gives you the context needed to make smarter entries, better manage risk, and ultimately, . The book is an essential guide for any trader serious about implementing this institutional-grade tool into their own strategy. Which do you currently use to run technical analysis
If you want to maximize your trading consistency, try pulling up a chart right now on your platform, select the , and click on the most recent corporate earnings date or macro trend swing low .
What do you use? (e.g., TradingView, ThinkOrSwim)
Think of it as a reference line you can pin to any moment in time that matters to you. Whether it's an earnings announcement, a significant news event, a major breakout, or a swing high/low, the AVWAP calculates the average price weighted by volume from that exact anchor point forward. It doesn't reset daily. In the words of its creator, Brian Shannon, "The AVWAP represents the absolute truth of the relationship between a stock's supply and demand, and is 100% objective". While the complete book is not legally available
: Unlike horizontal lines, AVWAP provides a moving, volume-weighted floor or ceiling that adjusts with every trade.
Find a significant market peak, trough, or high-volume earnings gap.
Anchored VWAP=∑(Price×Volume)∑VolumeAnchored VWAP equals the fraction with numerator sum of open paren Price cross Volume close paren and denominator sum of Volume end-fraction
NVDA rallies another 10% away from the anchor. Day 6: NVDA pulls back sharply, touching the Anchored VWAP line on lower volume. Trade Execution: You buy 500 shares at the VWAP line ($780). Stop Loss: $760 (-$20 risk). Target 1 (+1 SD): $825 (+$45 gain – partial profit). Target 2 (+2 SD): $870 (+$90 gain – final exit).
To apply Anchored VWAP effectively: