What is a reliable anchor to use when using the VWAP indicator?

Anchors for the VWAP (Volume Weighted Average Price) indicator can be various significant points in the price chart, and the reliability of an anchor depends on the context and the market conditions. Here are some common and reliable anchor types:

1. **Significant Highs and Lows**: Using significant highs or lows as anchors can be reliable. These points often represent key reversal or support levels, which can provide a meaningful reference point for the price action.
2. **Earnings Announcements**: Anchoring to earnings announcements can be useful, as these events often lead to significant price movements. The associated volatility can provide a clear anchor point.
3. **Gaps**: Price gaps can also serve as strong anchors. Gaps often indicate a shift in market sentiment or a breakout from a consolidation pattern, which can influence price movements.
4. **Volume Spikes**: Anchoring to points where there was a significant spike in trading volume can be reliable. High volume often signifies strong interest and can mark important price levels.
5. **Market Events**: Anchoring to other market-moving events, such as regulatory announcements or significant macroeconomic data releases, can provide a reliable anchor. These events can cause significant price movements and create a clear reference point.
6. **Trend Lines and Channels**: Anchoring to trend lines or channels that have been established through technical analysis can be useful. These lines can act as support or resistance levels, influencing price movements within a specific range.

When choosing an anchor, it's important to consider the following:

- **Relevance to Trading Strategy**: The anchor should align with your trading strategy and provide a meaningful reference point.
- **Market Context**: Understanding the market context and the events that led to the anchor point is crucial for accurate analysis.
- **Volatility**: Be aware of the volatility near the anchor point, as this can affect the reliability of the indicator.
- **Overlapping Indicators**: Using Anchored VWAP in conjunction with other indicators can provide a more comprehensive view of the market.

In conclusion, while there is no one-size-fits-all answer to what makes a reliable anchor for VWAP, using significant price points, events, or technical patterns that have clear contextual meaning and relevance to your trading strategy can provide a solid anchor point.