Anchored VWAP Channel Indicator

Anchored VWAP Channel Indicator

Anchored VWAP Channel indicator for MT4 works best in a trending market. Best trend-following mt4 indicator.

The Anchored VWAP Channel indicator for MT4 is an improved version of the Volume Weighted Average Price (VWAP) indicator. It comes with a unique feature (target-like symbol) to determine the exact point of interest for the signal calculation

The indicator is a trend channel-like tool built with algorithms that measure the movement of a financial trading asset based on volume and price. It is a valuable tool for analyzing the market and defining the directional bias of a trend.

The indicator is simple to use. It depicts a bullish move when the price of an asset is trading above the channel lines. Similarly, a bearish move is depicted when the price of an asset is below the channel lines.

Moreover, the indicator is chart-friendly, which leaves ample space on the chart for regular technical analysis. It is also suitable for novice, intermediate, and advanced forex traders. What’s more, it is recommended for scalpers and day/intraday traders.

How to Trade With Anchored VWAP Channel Indicator

The above image depicts how the indicator would look on your MT4 chart. It shows that the price is below the indicator’s bands, which implies a bearish trend. It also shows the starting point (target-like symbol), which is where the signal calculation begins. The starting point is adjustable and is best positioned at a spot where the price is moving sideways (ranging).

Furthermore, the price breakout of the bands and then moved to the downside. This implies a potential continuation of the established bearish trend, which in turn offers a possible sell opportunity. With the above conditions, you may then open a sell/short position after price action also prints a candlestick pattern like bearish engulfing, for instance.

Conclusion
The Anchored VWAP Channel indicator for MT4 works best in a trending market. Besides, it is also recommended to be used with price action/other technical indicators to increase efficiency. Finally, it is free to download.