To maximize gains, one must minimize "noise exits." AVWAP provides a superior filtering mechanism compared to standard deviation bands.

: AVWAP represents the "absolute truth" of supply and demand because it is 100% objective and shows the average price paid by all participants since a specific event. Risk is "Job One"

: When price is above the AVWAP, the average buyer since that anchor is in profit, creating a bullish sentiment.

Limitations and Pitfalls