The Anchored VWAP is a modified version of VWAP. It ties calculations to a specific price bar decided by the trader. It is similar to the traditional VWAP, as it incorporates price and trading volume in a weighted average. Like VWAP, it can also identify the areas of support and resistance on the chart. This indicator can warn you of a heavy price drop. Take a look at the bitcoin chart. If around 54000, the price breaks this line. This will be a serious warning for a heavy fall.