AVWAP: Is It Really the Trading Game-Changer Everyone Says?

Is Anchored Volume Weighted Average Price (AVWAP) the holy grail of trading indicators? In this video, you're going to find out.
✉️ Learn the secrets of legendary traders and investors:
bit.ly/4aCna7i
🔗 Follow along:
analyzingalpha.com/avwap
⏱️ Video Chapters
0:00 Intro
1::12 VWAP explained
1:42 Calculating SMA & VWAP
3:27 Adding VWAP in TradingView
4:58 Adding AVWAP in TradingView
5:35 Comparing AVWAP & EMA
7:19 Backtesting AVWAP
9:22 My Thoughts on AVWAP
10:00 Outro
🏷️ Tags
#AVWAP#trading
#technicalanalysis
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[@AnalyzingAlphaTV]

Let me know your thoughts. Do you use AVWAP? Did you like video? Love to hear your comments!

[@LutherBarnum]

Thank you for this video. I've gone through tons of videos on different indicators and finally landed on VWAP. After looking at a few videos of AVWAP, I wanted to see data that compared the 2 and this video is just what I needed. I'll be sticking with the VWAP going forward.

[@BlizzGMX]

intuitively I didn't think it was better either. Interesting work you're doing. I'll check out the other content you are working on.

[@AnalyzingAlphaTV]

Thanks for the kind words!

[@meissner07]

Hey, I really appreciate the video. Thank you for the insight.

[@AnalyzingAlphaTV]

My pleasure!

[@felicity960]

Nice Video. Got quite interesting perspective on AVWAP, one of the most popular indicator these days. Carry on with your good work of sharing knowledge. 😊

[@AnalyzingAlphaTV]

Much appreciated! Lots to come :-).

[@glennglazier4046]

I am a Mathematician, and to this day I still struggle with saying "statistically significant," and so you are not alone. And fantastic video, by the way!

[@AnalyzingAlphaTV]

Thank you for the kind words!

[@suii1067]

Great video!

[@AnalyzingAlphaTV]

Thanks!

[@djjohnbee]

Great video

[@AnalyzingAlphaTV]

Thanks!

[@AsiaStreet365]

Great video. Have you done an analysis on the MACD?

[@AnalyzingAlphaTV]

Not yet, but since you ask, I’ll put it on the list!

[@oneheroinmillion]

An eye opener

[@AnalyzingAlphaTV]

Yes, I thought so. Thanks for the comment!

[@hu5116]

Great video! However, you never made clear what your p-values were with respect to. As you likely know, p values are often used in hypothesis testing. What was your hypothesis? Or were you curve fitting? In which case you p-values relate to the goodness of your parameter estimates. It’s not at all clear what you were doing. Finally, it did not look like you were trading. If you are not trading with the VWAP, then your results are essentially meaningless, because trading is the end objective and without doing a comparison with trading it’s kinda irrelevant what ever you did. What did I miss?

[@AnalyzingAlphaTV]

Great question! The details and the code are here: analyzingalpha.com/avwap It’s to test the significance of the indicator against forward returns. It’s not perfect by any means but it’s often one of the first things I do before creating a more robust backtest.

[@quran2981]

Assalamualykum Dear Sir, I really appreciate your vedio how the VWAP & MA are working, please make a vedio on 100% profitable strategy where to buy & exit surely....thankyou jazakallah khair.....👍👍👍

[@valueray]

how dou you measure the forward returns? i not fully understand your jupyter

[@AnalyzingAlphaTV]

Great question. All I’m doing is taking yesterday’s indicator values and seeing how they relate to todays returns.

[@erinsonvillarroel1]

I like this opinion

[@AnalyzingAlphaTV]

Thanks for the kind words!

[@prsrajan]

Great Insights...I really curious to know what is least time period is AVWAP effective more than a day , like weekly with 1hr time frame..it's possible in your systems. Basically Max endurance limit of AVWAP Thanks

[@AnalyzingAlphaTV]

Great question. This shouldn’t be too hard to test. Perhaps a future video. Stay tuned!

[@noelmaskii25]

❤

[@AnalyzingAlphaTV]

Thank you!

[@bringingchristianstotoraht61]

Started using this indicator let me tell you it's a game changer if you can master this indicator it's could possibly be the holy grail if you can master it!

[@AnalyzingAlphaTV]

If it works for you, that's wonderful!

[@daveanderson8348]

Nice video, but actually already common knowledge with all indicators that are based on moving average. Are you really going to trade live? That would be interesting.

[@AnalyzingAlphaTV]

Thanks for the comment. Yes, I'll be trading live in the near future. Make sure you subscribe if you haven't already so you don't miss it!

[@gloveman61]

Yes the 10 bar moving average will be “more responsive” because every bar it drops the oldest bar data and adds the most recent. a true AVWAP would be place at key highs and lows as price moves in time, then you would see AVWAP as responsive as the SMA. you left it at the open. your comparison is not appropriate.

[@AnalyzingAlphaTV]

Hello, thanks for the comment. I think I may not have been clear enough in my explanation: Also, I don't compare a SMA with AVWAP, as you point out, that wouldn't make any sense. Volume at the anchor points is often exacerbated, such as due to earnings, which leads to earlier prices having an outsized impact compared to later prices that have had more price discovery. Here's a link to the page and the backtest results if you're interested: analyzingalpha.com/avwap

[@tontsa132]

You have green screen, studio mic, nerd skills but still your video sound is messed up and sounds like a 96kbps quality cleaning robot?

[@AnalyzingAlphaTV]

lol thanks for the comment. Yes, this issue has been fixed.

[@Stocks-ic1fg]

So brain Shannon is fooling us?

[@AnalyzingAlphaTV]

To be fair, the data shows AVWAP works… it’s just nothing that special.

[@Vimuks]

The way Brain teaches is extremely subject. So there is no edge using that way, it is basically drawing support and resistance. You may have a chance of having a 50% win rate 1/1 RR.