Anchored VWAP (AVWAP) for Futures Trading: Unlock Its Power on Tradovate and NinjaTrader Web

Introduction to Anchored VWAP (AVWAP)

You can use the Anchored VWAP (AVWAP) to find value areas in futures markets, so it helps with your entry and exit points. This tool starts from a point you pick, which gives a clear view of price action after key events. For futures traders like you, it shows where big volume trades happened, so you spot support and resistance better.

It belongs to the Value category, which helps you see market participant actions through auction theory. Explore all Value Indicators to build your skills. Unlike Session VWAP, which resets each session, Anchored VWAP holds to your chosen anchor, so it fits event-driven futures like crude oil (CL) or gold (GC).

In futures, it works well for index contracts like E-mini S&P 500 (ES), because volume spikes show fair value after news. You might pair it with Market Structure (CHoCH/BoS) for trends or RSI (Relative Strength Index) for overbought spots in Nasdaq 100 futures (NQ). Wondering how to boost your trades? Anchored VWAP could help you see hidden levels.

[Placeholder: Chart showing Anchored VWAP on ES futures with key levels marked.]

How Anchored VWAP (AVWAP) Works

Anchored VWAP starts from your chosen point, so it weighs prices by volume after that anchor. This helps you see value shifts in futures, where events cause big moves. It differs from Rolling VWAP, which uses a fixed window, because Anchored VWAP ties to real events like rollovers.

First, pick an anchor like a high-volume open. Then, for each bar, take the typical price, which is high plus low plus close divided by three. Multiply by volume, add up since anchor, and divide by total volume. So, it shows the average where most trades happened.

$\text{AVWAP} = \frac{\sum*{i=\text{anchor}}^{\text{current}} (\text{Typical Price}_i \times \text{Volume}_i)}{\sum*{i=\text{anchor}}^{\text{current}} \text{Volume}_i}$

Typical price means high plus low plus close over three. Next, find variance for bands.

$\text{Variance} = \frac{\sum (\text{Volume}_i \times \text{Price}_i^2)}{\sum \text{Volume}_i} - (\text{AVWAP})^2$

Standard deviation is square root of variance, so bands are AVWAP plus or minus multiples of that.

In simple terms, it averages prices but weights by volume, so busy areas matter more. In futures, it shines during sessions with high volume, like in soybean futures (ZS) after reports. Anchor to the report, and the line shows support if price pulls back with rising volume.

How to use Anchored VWAP in your trading? Tikitrade adds bands you can tweak, which helps spot volatility in NQ futures. For example, in gold futures (GC), anchor to news, so if price hits the line, it might hold as support.

[Placeholder: Diagram of AVWAP calculation steps on a CL futures chart.]

Trading with Anchored VWAP (AVWAP)

Risk Disclaimer: These trading setups are for educational purposes only and not investment advice. Past performance doesn't guarantee future results.

Anchored VWAP helps you find value in futures, so it aids in spotting reversals, breakouts, and ranges. Use stop-losses always, and test on demo accounts from Tradovate or NinjaTrader Web. Here are three strategies with other Tikitrade tools.

Strategy 1: Event-Based Reversal

Setup: Anchor to news in ES futures, and watch if price strays while RSI (Relative Strength Index) shows overbought above 70 or oversold below 30.

Entry: Go long if price hits lower band with RSI up from oversold, when a bullish candle closes above the line.

Stop-Loss: Set below lower band or recent low, so you risk 1% of your account.

Take-Profit: Aim for upper band or 2:1 risk-reward.

Anchored VWAP works here by showing value after news, like in CL futures post-data.

Strategy 2: Breakout Confirmation

Setup: Anchor to session low in GC futures, and use Market Structure (CHoCH/BoS) for higher highs.

Entry: Buy if price breaks above AVWAP with volume up, after CHoCH confirms bull trend.

Stop-Loss: Below AVWAP or breakout low.

Take-Profit: At next resistance or trail with upper bands.

This uses AVWAP volume weight for strong breakouts in commodities.

Strategy 3: Range-Bound Mean Reversion

Setup: Anchor to range ends in ZS futures, and add Bollinger Bands for squeezes.

Entry: Short if price hits upper band in squeeze, with bearish signs.

Stop-Loss: Above upper band.

Take-Profit: At AVWAP center or lower band.

AVWAP aids reversion in low-vol ranges. Check similar Value tools for more ideas. Use risk rules always, so you see steady results.

[Placeholder: Chart of reversal strategy on GC futures with AVWAP and RSI.]

Tikitrade’s Anchored VWAP (AVWAP) Indicator

Tikitrade's Anchored VWAP (AVWAP) boosts your futures trades on Tradovate and NinjaTrader Web, with features like volume profiles for accuracy, clouds for visuals, and signals for alerts. These save time in fast markets like ES futures.

It stands out with mid-bands for levels, and signal options to confirm crosses. You decide quicker in NQ trades.

Key parameters you can change:

Anchor Date/Time – Pick events like FOMC, so it fits your futures plan.
Band Std Devs (Standard Deviation) – Set to 1 for close support in CL.
Show Cloud – Turn on for bounds like body or wick, to spot reversals in GC.
Paint Bars – Color candles by AVWAP spot, which highlights trends.
Show Signals – Get alerts for crosses, with opacity for clarity.

Screenshot: Tikitrade’s Anchored VWAP (AVWAP) with bands and cloud on Tradovate for crude oil futures. Alt text: Tikitrade Anchored VWAP (AVWAP) indicator applied to crude oil futures (CL) for SEO optimization.

In Value Indicators, it works with Anchored Volume Profile (Volume Profile). Give it a try for your edge in futures.

Embed: Tikitrade tutorial video on Anchored VWAP (AVWAP) for futures trading.

[Placeholder: Labeled diagram of AVWAP bands on ZN futures chart.]

Fun Facts About Anchored VWAP (AVWAP)

Brian Shannon created Anchored VWAP in 2003, so it blends price and volume for better timing. You can learn more on his site Alphatrends or in his book Maximum Trading Gains With Anchored VWAP.

It gained use in institutions first, but now helps futures traders spot value in ES or ZN. In commodity swings like ZS during seasons, it shows fair prices well.

Conclusion

Anchored VWAP (AVWAP) gives clear value insights for futures, from ES reversals to CL breakouts. Tikitrade's tool adds bands, clouds, and signals, only on Tradovate and NinjaTrader Web. Use it to trade with more confidence.

Always see a financial advisor for advice on futures contracts. Sign up for Tikitrade today and boost your futures trades with our premium Anchored VWAP (AVWAP) indicator!

Learn more on futures contracts at CME Group.

Frequently Asked Questions

Can Anchored VWAP (AVWAP) work for day trading futures?
Yes, anchor to the open for intraday in NQ futures, so you spot support fast. It fits high-volume times.

How does Tikitrade's Anchored VWAP (AVWAP) differ from free tools?
It has volume profiles, mid-bands, and alerts, which boost choices on Tradovate, unlike basic ones.

What settings fit Anchored VWAP (AVWAP) for futures?
Use std dev 1-3 for bands, and anchor to events. Test on GC for swings.

Anchored VWAP (AVWAP) vs. VWAP in futures trading?
AVWAP starts from your point for context, while VWAP resets daily. It suits event trades in CL.

Does it pair with other tools?
Yes, use with RSI (Relative Strength Index) for momentum in ZS futures.

How to find Anchored VWAP (AVWAP) by hand?
Sum price times volume from anchor, divide by total volume. Tikitrade does it for you.

Related Indicators for Futures Trading

Pair Anchored VWAP (AVWAP) with Market Structure (CHoCH/BoS) for trend checks in gold futures (GC).
Add RSI (Relative Strength Index) to find overbought in E-mini S&P 500 futures (ES).
Use with Session Volume Profile for volume in crude oil futures (CL).
Link to Supertrend for trails in soybean futures (ZS).