Anchored VWAP
A volume-weighted average price calculated from a chosen starting point rather than from the beginning of the session.
Formula
Anchored VWAP = Sum of (Price x Volume) from the anchor date / Sum of Volume from the anchor date
Unit
₹
In depth
Anchoring lets the calculation start at an event — a results announcement, a major low, a listing date — so the resulting line represents the average price paid by everyone who has traded since that event. That is a genuinely meaningful number: it approximates the break-even price of the cohort of buyers from that point. Its weakness is the choice of anchor, which is subjective and can be selected after the fact to produce a line that fits recent price. Described here as an average of prices actually paid, with no predictive claim.
Worked example
Since a results announcement, 60 lakh shares have traded at an average weighted price of ₹487. Everyone who bought after that announcement is, in aggregate, at break-even at ₹487 — a description of positioning, not a forecast.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Anchored VWAP” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.