OPEN-SOURCE SCRIPT
VWAP CCI Reversal Scalp Edition
1. What Is This Indicator?
VWAP CCI Reversal (Scalp Edition) is a precision counter-trend indicator designed to catch short-term price reversals at statistically significant extremes. It combines two powerful concepts:
• VWAP Standard Deviation Bands — identifies where price is statistically “too far” from the institutional average cost
• CCI (±100) Crossback — detects the exact moment momentum shifts from extreme back toward neutral
Core idea: When price reaches the ±2σ VWAP band AND the CCI crosses back through ±100, the market is showing a high-probability mean-reversion setup. You are buying the statistical bottom and selling the statistical top — not guessing, but reacting to confirmed exhaustion.
IMPORTANT: This indicator is designed for intraday scalping on 1m, 3m, and 5m charts. It resets the Daily VWAP at midnight (server time). Do not use on daily or weekly charts.
2. How Signals Work
2.1 Buy Signal (Bottom Hunt) — BUY label
All of the following conditions must be true simultaneously:
• Price low touches the −2σ VWAP band zone (the red shaded area below VWAP)
• CCI crosses back above −100 (oversold exhaustion confirmed)
• CCI reached below −120 within the last 10 bars (genuine extreme was visited)
• Current candle closes bullish (close > open)
• Volume exceeds its 20-bar average (real buying pressure, not a slow drift)
Take profit targets: TP1 = entry + ATR × 2.0 TP2 = entry + ATR × 3.5
Stop loss: entry − ATR × 1.5 (automatically drawn on chart for 15 bars)
2.2 Sell Signal (Top Hunt) — SELL label
The mirror image of the buy signal:
• Price high touches the +2σ VWAP band zone (the upper red shaded area)
• CCI crosses back below +100 (overbought exhaustion confirmed)
• CCI reached above +120 within the last 10 bars
• Current candle closes bearish (close < open)
• Volume exceeds its 20-bar average
Take profit targets: TP1 = entry − ATR × 2.0 TP2 = entry − ATR × 3.5
Stop loss: entry + ATR × 1.5
3. Reading the Chart
Element Color Meaning
Daily VWAP Blue line (thick) Institutional average cost for today. Price is attracted to this.
Weekly VWAP Orange dotted line Larger-scale institutional cost. Above = macro bullish bias.
±1σ Band Teal lines Normal range. Price spends most time here. No signal zone.
±2σ Band Orange lines Extended range. Price reaching here = statistically stretched.
±3σ Band Red lines Extreme range. Rare. High-impact reversal if CCI confirms.
Red shaded zones Between ±2σ and ±3σ Active signal zone. Where BUY/SELL signals can appear.
BUY (green triangle) Below bar Long entry signal. All 5 conditions confirmed.
SELL (red triangle) Above bar Short entry signal. All 5 conditions confirmed.
SL / TP1 / TP2 lines Red / Teal / Green Risk management levels. Auto-drawn after signal, fades after 15 bars.
Bar highlight Green or red glow The exact signal bar for quick visual reference.
4. Settings Guide
4.1 CCI Settings
Parameter Default What It Does When to Change
CCI Period 9 How many bars CCI looks back. Shorter = faster, noisier. Try 7 for 1m, 10–14 for 5m.
CCI EMA Smoothing 2 Smooths the CCI line to reduce whipsaws. Raise to 3–5 to cut false signals.
4.2 VWAP Band Settings
Parameter Default What It Does When to Change
Band 1 Multiplier 1.0 Sets the inner (±1σ) boundary. Leave at 1.0 in most cases.
Band 2 Multiplier 2.0 Sets the signal zone boundary. Price must reach this. Lower to 1.5 for more signals.
Band 3 Multiplier 3.0 Sets the outer extreme boundary. Raise to 3.5 for quieter markets.
Zone Buffer 0.5 How far beyond ±2σ price is still accepted (in σ units). Raise to 0.8 if signals are too rare.
4.3 Confirmation Filters
Filter Default Purpose Tip
Weekly VWAP Bias OFF Only buy above / sell below the weekly VWAP. Turn ON for swing context awareness.
Volume Confirmation ON Requires current volume > SMA × multiplier. Keep ON. Removes dead-market noise.
Volume Multiplier 1.0× Minimum volume spike required. Raise to 1.3× for stricter entries.
Reversal Candle ON Buy signal needs bullish close, sell needs bearish close. Keep ON. Filters half-formed moves.
CCI Extreme Visit ON CCI must have visited ±120 recently. Turn OFF if signals are too rare.
Extreme Lookback 10 bars How far back to check for the CCI extreme. Raise to 15 on slower instruments.
5. Pro Tips for Scalping
Best times to trade
• Tokyo session open (09:00–11:00 JST) — strong directional moves, VWAP bands respected
• London/NY overlap (22:00–24:00 JST) — highest volume, most reliable signals
• NY open (22:30 JST) — often produces the cleanest ±2σ spikes of the day
Times to avoid
• Tokyo lunch break (11:30–12:30 JST) — volume collapses, CCI produces false crossbacks
• First 5 minutes after market open — VWAP and bands not yet stable
• News events — price can gap through ±3σ and keep going; always check the economic calendar
Tuning signals for your instrument
Instrument Recommended CCI Period Zone Buffer Notes
Forex majors (USD/JPY, EUR/USD) 9 0.5 Standard defaults work well.
Crypto (BTC, ETH) 7 0.8 Higher volatility; widen the zone.
Nikkei / US indices (futures) 10 0.4 Tighter zone; very mean-reverting.
Gold (XAU/USD) 9 0.6 Moderate settings; watch for trend days.
Signal quality checklist
Before entering, confirm all of these mentally:
• Is the signal bar in the red shaded zone (between ±2σ and ±3σ)?
• Is there a visible spike in volume on or just before the signal bar?
• Is the broader VWAP trend aligned? (Price above VWAP = prefer longs)
• Is there a clean SL level visible on the chart?
• Is the risk/reward at least 1:2? (Check TP1 vs SL distance)
6. Common Mistakes to Avoid
Mistake 1: Trading during low-volume hours The Volume Confirmation filter helps, but the best practice is to simply avoid trading between midnight and 7:00 JST and during the Tokyo lunch break. The VWAP bands narrow and CCI crossbacks become meaningless.
Mistake 2: Ignoring the trend on trend days On strong trend days, price can stay at ±2σ for extended periods and keep pushing. If you see 3+ consecutive signal bars all in the same direction without follow-through, that is a trend — stand aside.
Mistake 3: Moving the stop loss The SL is placed at ATR × 1.5 for a reason. If price hits your stop, exit. Do not widen the SL hoping for a recovery — this is the single biggest account-killer in scalping.
Mistake 4: Taking TP2 targets on scalp timeframes TP2 (ATR × 3.5) is ambitious for 1–5 minute charts. Consider taking full profit at TP1 and trail a small portion to TP2. A bird in hand is worth more than a theoretical target.
7. Setting Up Alerts
The indicator includes 3 pre-built alert conditions. To set up in TradingView:
• Right-click on the chart and select “Add Alert”
• Set Condition to “VWAP CCI Reversal — Scalp Edition”
• Choose from the available alert triggers:
◦ Bottom Hunt — Long: fires on every buy signal
◦ Top Hunt — Short: fires on every sell signal
◦ Any Reversal Signal: fires on either direction
• Set notification to “Once Per Bar Close” for confirmed signals (recommended)
• Or use “Once Per Bar” for faster alerts (more false positives possible)
8. Quick Reference — Default Parameters
Parameter Default Value Group
CCI Period 9 CCI Settings
CCI EMA Smoothing 2 CCI Settings
Band 1 Multiplier (±1σ) 1.0 VWAP Bands
Band 2 Multiplier (±2σ, signal zone) 2.0 VWAP Bands
Band 3 Multiplier (±3σ, extreme) 3.0 VWAP Bands
Zone Buffer 0.5σ Entry Zone Filter
Wide Zone mode OFF Entry Zone Filter
Weekly VWAP Bias Filter OFF Confirmation Filters
Volume Confirmation ON Confirmation Filters
Volume SMA Period 20 Confirmation Filters
Volume Multiplier 1.0× Confirmation Filters
Reversal Candle Confirmation ON Confirmation Filters
Require CCI Extreme Visit (±120) ON Confirmation Filters
Extreme CCI Lookback 10 bars Confirmation Filters
ATR Period (SL/TP) 14 Risk Management
Stop Loss ATR Multiplier 1.5× Risk Management
TP1 ATR Multiplier 2.0× Risk Management
TP2 ATR Multiplier 3.5× Risk Management
SL/TP Display Duration 15 bars Risk Management
Disclaimer
This indicator is provided for educational purposes only. It does not constitute financial advice. Past performance of any indicator does not guarantee future results. Trading involves substantial risk of loss. Always use proper position sizing and risk management. Never risk more than you can afford to lose.
VWAP CCI Reversal (Scalp Edition) is a precision counter-trend indicator designed to catch short-term price reversals at statistically significant extremes. It combines two powerful concepts:
• VWAP Standard Deviation Bands — identifies where price is statistically “too far” from the institutional average cost
• CCI (±100) Crossback — detects the exact moment momentum shifts from extreme back toward neutral
Core idea: When price reaches the ±2σ VWAP band AND the CCI crosses back through ±100, the market is showing a high-probability mean-reversion setup. You are buying the statistical bottom and selling the statistical top — not guessing, but reacting to confirmed exhaustion.
IMPORTANT: This indicator is designed for intraday scalping on 1m, 3m, and 5m charts. It resets the Daily VWAP at midnight (server time). Do not use on daily or weekly charts.
2. How Signals Work
2.1 Buy Signal (Bottom Hunt) — BUY label
All of the following conditions must be true simultaneously:
• Price low touches the −2σ VWAP band zone (the red shaded area below VWAP)
• CCI crosses back above −100 (oversold exhaustion confirmed)
• CCI reached below −120 within the last 10 bars (genuine extreme was visited)
• Current candle closes bullish (close > open)
• Volume exceeds its 20-bar average (real buying pressure, not a slow drift)
Take profit targets: TP1 = entry + ATR × 2.0 TP2 = entry + ATR × 3.5
Stop loss: entry − ATR × 1.5 (automatically drawn on chart for 15 bars)
2.2 Sell Signal (Top Hunt) — SELL label
The mirror image of the buy signal:
• Price high touches the +2σ VWAP band zone (the upper red shaded area)
• CCI crosses back below +100 (overbought exhaustion confirmed)
• CCI reached above +120 within the last 10 bars
• Current candle closes bearish (close < open)
• Volume exceeds its 20-bar average
Take profit targets: TP1 = entry − ATR × 2.0 TP2 = entry − ATR × 3.5
Stop loss: entry + ATR × 1.5
3. Reading the Chart
Element Color Meaning
Daily VWAP Blue line (thick) Institutional average cost for today. Price is attracted to this.
Weekly VWAP Orange dotted line Larger-scale institutional cost. Above = macro bullish bias.
±1σ Band Teal lines Normal range. Price spends most time here. No signal zone.
±2σ Band Orange lines Extended range. Price reaching here = statistically stretched.
±3σ Band Red lines Extreme range. Rare. High-impact reversal if CCI confirms.
Red shaded zones Between ±2σ and ±3σ Active signal zone. Where BUY/SELL signals can appear.
BUY (green triangle) Below bar Long entry signal. All 5 conditions confirmed.
SELL (red triangle) Above bar Short entry signal. All 5 conditions confirmed.
SL / TP1 / TP2 lines Red / Teal / Green Risk management levels. Auto-drawn after signal, fades after 15 bars.
Bar highlight Green or red glow The exact signal bar for quick visual reference.
4. Settings Guide
4.1 CCI Settings
Parameter Default What It Does When to Change
CCI Period 9 How many bars CCI looks back. Shorter = faster, noisier. Try 7 for 1m, 10–14 for 5m.
CCI EMA Smoothing 2 Smooths the CCI line to reduce whipsaws. Raise to 3–5 to cut false signals.
4.2 VWAP Band Settings
Parameter Default What It Does When to Change
Band 1 Multiplier 1.0 Sets the inner (±1σ) boundary. Leave at 1.0 in most cases.
Band 2 Multiplier 2.0 Sets the signal zone boundary. Price must reach this. Lower to 1.5 for more signals.
Band 3 Multiplier 3.0 Sets the outer extreme boundary. Raise to 3.5 for quieter markets.
Zone Buffer 0.5 How far beyond ±2σ price is still accepted (in σ units). Raise to 0.8 if signals are too rare.
4.3 Confirmation Filters
Filter Default Purpose Tip
Weekly VWAP Bias OFF Only buy above / sell below the weekly VWAP. Turn ON for swing context awareness.
Volume Confirmation ON Requires current volume > SMA × multiplier. Keep ON. Removes dead-market noise.
Volume Multiplier 1.0× Minimum volume spike required. Raise to 1.3× for stricter entries.
Reversal Candle ON Buy signal needs bullish close, sell needs bearish close. Keep ON. Filters half-formed moves.
CCI Extreme Visit ON CCI must have visited ±120 recently. Turn OFF if signals are too rare.
Extreme Lookback 10 bars How far back to check for the CCI extreme. Raise to 15 on slower instruments.
5. Pro Tips for Scalping
Best times to trade
• Tokyo session open (09:00–11:00 JST) — strong directional moves, VWAP bands respected
• London/NY overlap (22:00–24:00 JST) — highest volume, most reliable signals
• NY open (22:30 JST) — often produces the cleanest ±2σ spikes of the day
Times to avoid
• Tokyo lunch break (11:30–12:30 JST) — volume collapses, CCI produces false crossbacks
• First 5 minutes after market open — VWAP and bands not yet stable
• News events — price can gap through ±3σ and keep going; always check the economic calendar
Tuning signals for your instrument
Instrument Recommended CCI Period Zone Buffer Notes
Forex majors (USD/JPY, EUR/USD) 9 0.5 Standard defaults work well.
Crypto (BTC, ETH) 7 0.8 Higher volatility; widen the zone.
Nikkei / US indices (futures) 10 0.4 Tighter zone; very mean-reverting.
Gold (XAU/USD) 9 0.6 Moderate settings; watch for trend days.
Signal quality checklist
Before entering, confirm all of these mentally:
• Is the signal bar in the red shaded zone (between ±2σ and ±3σ)?
• Is there a visible spike in volume on or just before the signal bar?
• Is the broader VWAP trend aligned? (Price above VWAP = prefer longs)
• Is there a clean SL level visible on the chart?
• Is the risk/reward at least 1:2? (Check TP1 vs SL distance)
6. Common Mistakes to Avoid
Mistake 1: Trading during low-volume hours The Volume Confirmation filter helps, but the best practice is to simply avoid trading between midnight and 7:00 JST and during the Tokyo lunch break. The VWAP bands narrow and CCI crossbacks become meaningless.
Mistake 2: Ignoring the trend on trend days On strong trend days, price can stay at ±2σ for extended periods and keep pushing. If you see 3+ consecutive signal bars all in the same direction without follow-through, that is a trend — stand aside.
Mistake 3: Moving the stop loss The SL is placed at ATR × 1.5 for a reason. If price hits your stop, exit. Do not widen the SL hoping for a recovery — this is the single biggest account-killer in scalping.
Mistake 4: Taking TP2 targets on scalp timeframes TP2 (ATR × 3.5) is ambitious for 1–5 minute charts. Consider taking full profit at TP1 and trail a small portion to TP2. A bird in hand is worth more than a theoretical target.
7. Setting Up Alerts
The indicator includes 3 pre-built alert conditions. To set up in TradingView:
• Right-click on the chart and select “Add Alert”
• Set Condition to “VWAP CCI Reversal — Scalp Edition”
• Choose from the available alert triggers:
◦ Bottom Hunt — Long: fires on every buy signal
◦ Top Hunt — Short: fires on every sell signal
◦ Any Reversal Signal: fires on either direction
• Set notification to “Once Per Bar Close” for confirmed signals (recommended)
• Or use “Once Per Bar” for faster alerts (more false positives possible)
8. Quick Reference — Default Parameters
Parameter Default Value Group
CCI Period 9 CCI Settings
CCI EMA Smoothing 2 CCI Settings
Band 1 Multiplier (±1σ) 1.0 VWAP Bands
Band 2 Multiplier (±2σ, signal zone) 2.0 VWAP Bands
Band 3 Multiplier (±3σ, extreme) 3.0 VWAP Bands
Zone Buffer 0.5σ Entry Zone Filter
Wide Zone mode OFF Entry Zone Filter
Weekly VWAP Bias Filter OFF Confirmation Filters
Volume Confirmation ON Confirmation Filters
Volume SMA Period 20 Confirmation Filters
Volume Multiplier 1.0× Confirmation Filters
Reversal Candle Confirmation ON Confirmation Filters
Require CCI Extreme Visit (±120) ON Confirmation Filters
Extreme CCI Lookback 10 bars Confirmation Filters
ATR Period (SL/TP) 14 Risk Management
Stop Loss ATR Multiplier 1.5× Risk Management
TP1 ATR Multiplier 2.0× Risk Management
TP2 ATR Multiplier 3.5× Risk Management
SL/TP Display Duration 15 bars Risk Management
Disclaimer
This indicator is provided for educational purposes only. It does not constitute financial advice. Past performance of any indicator does not guarantee future results. Trading involves substantial risk of loss. Always use proper position sizing and risk management. Never risk more than you can afford to lose.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.