Every trader has their favorite tools — moving averages, Fibonacci, oscillators, you name it.
But few are as powerful as the AVWAP.
It’s the average price by volume anchored to a specific moment in time — blending price and psychology to show where the average market participant is positioned.
Right now, three key risk-on, sensitive groups are challenging their AVWAPS from the April lows: Banks, Builders, and Bitcoin.
These levels mark the price the average investor has paid since that day — an important threshold to watch.
Holding above them keeps buyers in control of the primary trend and supports a healthy market environment. Slip below, and traders are underwater, with pressure building quickly.
For now, as long as these groups hold the line, the world isn’t coming to an end, and broader risk appetite remains intact.
But if they flush lower, they’re likely to revisit their year-to-date lows — a move that would signal trouble for risk assets more broadly.
Stay sharp,
Alfonso De Pablos, CMT Director of Research, All Star Charts
