In this lesson, we move on once more to consider the third of our VWAP variants, which in this case is the AVWAP indicator, which stands for anchored volume weighted average price, and here we are back on the NinjaTrader platform with Apple stock.
The major difference with the AVWAP is that it can be anchored at any point on the chart, so you have complete control over where the indicator starts its calculations. Generally, this is at a significant high or significant low, which can then be considered an important point at which to drop the AVWAP and start our analysis. It is used in precisely the same way in multiple timeframes and supported with our volume price analysis methodology.