A common question traders ask is where exactly to anchor VWAP at the start of the day. The answer is precise and mechanical – and understanding it removes a lot of confusion.

For daily VWAP, the anchor is set at the start of the trading session, and it begins calculating immediately as trades occur.

What happens during the first minute

As soon as the market opens, VWAP starts building from the very first trades.

• The dot you see represents the current volume weighted average price for the first minute
• It moves because new trades and volume are still coming in
• Each transaction updates the calculation in real time

During this first minute, VWAP is still forming.

Why the dot stops moving

Once the first one-minute candle closes, something important happens.

• The dot locks in at the true VWAP of that first minute
• That value becomes the anchor point for the day
• It will not change after the candle closes

This is the confirmed starting point of daily VWAP.

Important note

Before the first minute closes, VWAP is provisional. After it closes, the anchor is fixed.

Early movement is normal – not an error.

How VWAP builds after the anchor is set

From that first confirmed minute forward, VWAP becomes cumulative.

• The second minute’s VWAP is averaged with the first
• Each new minute adds more price and volume information
• The line may slope up, down, or flatten depending on participation

This continuous averaging is what creates the VWAP line traders reference throughout the session.

Caution

Treating VWAP as a static level early in the session can lead to poor decisions. It is still absorbing information and will continue to evolve.

The takeaway

• Daily VWAP is anchored at the start of the trading day
• The first minute determines the initial anchor point
• The anchor becomes fixed once that minute closes
• VWAP then builds cumulatively as the session progresses

Knowing exactly where VWAP gets set allows traders to use it with clarity – not guesswork.