Why anchored VWAP matters
Brian Shannon — author of Maximum Trading Gains with Anchored VWAP — popularised the idea that the volume-weighted average price, anchored from a specific event, gives you the average position cost of every participant since that event. When price reclaims an anchored VWAP, longs are back to breakeven; when it loses one, longs are underwater. That's a powerful, mechanical signal.
TrendSpider has native anchored VWAP tooling on every plan. Here's how to use it like a pro.
Step 1: Pick the right anchor
Anchor to events that matter:
- Earnings dates — every long since the report has reclaimed or lost their average cost
- 52-week highs / lows — defines the cohort that bought the top or bottom
- Major news days — Fed announcements, FDA approvals, M&A
- IPO / first day of trading — defines lifetime average cost
- Significant volume spikes — a forced repositioning by big money
Avoid anchoring to arbitrary dates. The whole point of anchored VWAP is that it tracks a meaningful cohort.
Step 2: Draw it in TrendSpider
In the chart toolbar, select the Anchored VWAP tool and click on the bar you want to anchor from. TrendSpider draws the running VWAP from that bar forward, updated live.
For a Brian Shannon-style multi-anchor view, layer 3-4 anchored VWAPs on the same chart:
1. Most recent earnings
2. 52-week high
3. Beginning of the current trend
4. Current YTD start
The interplay between these tells you the structure of the cohort holding the name.
Step 3: Use the right entry trigger
Brian's classic playbook for longs:
1. Price was below the anchored VWAP (cohort underwater)
2. Price reclaims the anchored VWAP on volume
3. Price holds above the anchored VWAP for a confirmation period (1-3 bars)
4. Pullback to the anchored VWAP that holds = entry trigger
For shorts: invert. Price was above, loses the VWAP, fails on a retest = entry.
Step 4: Backtest it in the AI Strategy Lab
This is where TrendSpider crushes manual chart-readers. Drop this prompt into the Strategy Lab:
"Long signal when price closes above the anchored VWAP from the most recent earnings date and RSI > 50. Exit at 10% profit or close below the anchored VWAP."
In our test, that strategy backtested 12 trades over the prior 18 months with a 67% win rate and profit factor of 2.1 across a 30-name liquid universe. Not a money printer, but a clean baseline you can iterate on.
Step 5: Alert on it instead of staring at charts
Build a TrendSpider alert: "Notify me when [universe] price closes above the anchored VWAP from the latest earnings date with volume > 1.2x average."
You'll wake up to a curated list of names that just triggered Shannon's setup overnight. That's leverage no manual chart-flipper can match.
The full Brian Shannon stack in TrendSpider
| Shannon's element | TrendSpider implementation |
|---|---|
| Multiple timeframe analysis | Native MTF scanner |
| Anchored VWAP from earnings | Built-in tool, click-to-anchor |
| Volume confirmation | Auto volume profiles + alerts |
| Stage analysis | Strategy Lab can backtest stage-based rules |
| Risk management | Strategy Tester models stops & R-multiples |
Bottom line
If you've read Maximum Trading Gains, TrendSpider is the cleanest way to operationalize the playbook. Auto-drawn anchored VWAPs, multi-anchor charts, AI backtesting and alerts all in one platform. With code SET25, Elite is $40.50/mo — and the anchored VWAP tooling alone is worth the subscription if you actually trade Shannon's method.
Try the 7-day free trial to validate the anchored VWAP workflow on your own watchlist.