Anchor Period
Last updated January 31, 2025
An anchor period is the timeframe over which an indicator calculates its values before resetting. It defines how often calculations reset and influences how traders interpret price action over different timeframes.
The choice of anchor period significantly impacts analysis, influencing trend detection, volatility sensitivity, and overall trading strategy.
Anchor Period in TWAP & VWAP Trading
An anchor period is the starting point from which TWAP (Time-Weighted Average Price) or VWAP (Volume-Weighted Average Price) begins its calculation. The indicator resets at the end of each anchor period, ensuring the data remains relevant to the selected timeframe.
| Anchor Period | Reset Time |
| 1 Hour | Resets every hour on the clock (e.g., 10:00, 11:00, etc.) |
| 4 Hours | Resets every 4 hours (e.g., 12:00 AM, 4:00 AM, 8:00 AM, etc.) |
| 12 Hours | Resets every 12 hours (e.g., 12:00 AM, 12:00 PM) |
| 1 Day | Resets at the start of each day at 12:00 AM |
| 3 Days | Resets every 3 days at 12:00 AM |
| 1 Week | Resets at the start of week (Mon 12:00 AM) |
| 1 Month | Resets on the first day of the calendar month |
| 1 Year | Resets on the first day of the calendar year |
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