VWAP is often used in algorithmic trading and/or as a trading benchmark by large investors to ensure a descent execution price for clients but you can use it for other interesting purposes as well.
In Chartmill, you can add both anchored and moving VWAPS to your chart.
A Moving VWAP over a period of 50- days gives a trader information on the average price traded over the last 50-days adjusted by volume.
Example: SPY Chart with Moving VWAP(50)
With an anchored VWAP you can check if buyers are mainly in winning or losing positions over a certain period of time. In the following chart we’ve drawn an anchored VWAP that starts exactly at a previous bottom (in this example precisely 26-days ago).
Example: SPY chart with an Anchored VWAP(26)
Aah yes … here is how you do it: