Anchored VWAP by Fin Viraj

Simple Anchored VWAP with Directional Colors
📊 Overview
A clean and efficient Anchored VWAP (Volume Weighted Average Price) indicator with dynamic directional coloring. This indicator provides traders with a reliable reference point for price action analysis based on volume-weighted calculations from specific anchor points.
✨ Key Features
🎯 Multiple Anchor Types

Session: Anchors to daily trading session start
Day: Resets at the beginning of each trading day
Week: Weekly anchor points for swing trading
Month: Monthly anchors for longer-term analysis
Manual Date: Set custom anchor date for specific events

🌈 Directional Color System

🟢 Green: Price above VWAP with upward momentum
🔴 Red: Price below VWAP with downward momentum
🔵 Blue: Neutral/transitional conditions

📏 Standard Deviation Bands

Customizable multipliers (default: 1.0 and 2.0)
Toggle on/off as needed
Support and resistance levels based on statistical deviation
Filled area between bands for better visualization

🔧 Settings & Customization
Input Parameters

Anchor Type: Choose from 5 different anchor methods
Manual Anchor Date: Set specific date for manual anchoring
Reset Anchor Point: Manual reset button
Show Standard Deviation Bands: Toggle bands visibility
Band Multipliers: Adjust band distance (1σ and 2σ)
VWAP Line Width: Customize line thickness (1-4)

Color Customization

Bullish Color: Customize uptrend color
Bearish Color: Customize downtrend color
Neutral Color: Customize neutral state color
Band Color: Customize standard deviation bands color

📈 How to Use
For Day Trading

Set anchor type to "Session" or "Day"
Use VWAP as dynamic support/resistance
Green color = bullish bias, Red color = bearish bias

For Swing Trading

Set anchor type to "Week" or "Month"
Longer-term VWAP acts as major S/R level
Standard deviation bands show potential reversal zones

For Event-Based Analysis

Set anchor type to "Manual Date"
Choose significant event date (earnings, news, etc.)
Analyze price behavior relative to that anchor point

🎨 Visual Interpretation
VWAP Line Colors

Bright Green: Strong bullish momentum (price above rising VWAP)
Bright Red: Strong bearish momentum (price below falling VWAP)
Blue: Neutral conditions or transitional phase

Standard Deviation Bands

Upper Bands: Potential resistance levels
Lower Bands: Potential support levels
Band Touches: Often indicate reversal or continuation points

💡 Trading Applications
Support & Resistance

VWAP acts as dynamic support in uptrends
VWAP acts as dynamic resistance in downtrends
Standard deviation bands provide additional S/R levels

Trend Analysis

Price consistently above VWAP = bullish trend
Price consistently below VWAP = bearish trend
Color changes help identify trend shifts

Entry & Exit Points

Use VWAP reclaims for potential long entries
Use VWAP breaks for potential short entries
Standard deviation bands for profit-taking levels

⚙️ Technical Details

Pine Script Version: v6
Overlay: Yes (plots on price chart)
Calculation: Volume-weighted average price from anchor point
Standard Deviation: Statistical measure of price dispersion
Performance: Optimized for real-time calculation

🔄 Anchor Reset Logic
The indicator automatically resets based on selected anchor type:

Session/Day: Resets at market open
Week: Resets at week start
Month: Resets at month start
Manual: Resets from chosen date
Manual Reset: Override button for immediate reset

📋 Best Practices

Choose appropriate timeframe for your anchor type
Combine with volume analysis for better confirmation
Use multiple timeframes for comprehensive analysis
Consider market context when interpreting signals
Test on demo before live trading

⚠️ Disclaimer
This indicator is for educational and informational purposes only. Always conduct your own analysis and risk management before making trading decisions.