OPEN-SOURCE SCRIPT
VWAP Structure & Bands
VWAP Structure & Bands is a visual tool that helps traders understand price location relative to the Volume Weighted Average Price (VWAP) during each trading session.
VWAP represents the average traded price weighted by volume, providing a reference point for understanding where price is trading relative to the session's volume-weighted mean.
Key Features
Session VWAP
The main VWAP line resets at the beginning of each trading day and tracks the volume-weighted average price throughout the session.
VWAP Bands
The upper and lower bands are calculated using the volume-weighted standard deviation around VWAP. They provide a dynamic view of how far price has moved from the session's volume-weighted mean.
VWAP Crosses
Optional markers highlight when price crosses above or below VWAP, helping identify changes in price location relative to the session's average.
How to Read It
Price above VWAP
Price is trading above the session's volume-weighted average.
Price below VWAP
Price is trading below the session's volume-weighted average.
Price near VWAP
The market is trading close to its volume-weighted mean, which can indicate a period of balance.
Upper or Lower Band
Price reaching the outer bands indicates a larger deviation from VWAP. This does not automatically mean that a reversal will occur.
Important Note
VWAP is a reference tool, not a standalone trading signal. Price can remain above or below VWAP for extended periods, particularly during strong directional markets.
Disclaimer
This indicator is provided for educational and informational purposes only. It does not constitute financial, investment, trading, or other professional advice.
Past market behavior does not guarantee future results. Trading financial markets involves substantial risk. Always conduct your own research and apply appropriate risk management before making trading decisions.
VWAP represents the average traded price weighted by volume, providing a reference point for understanding where price is trading relative to the session's volume-weighted mean.
Key Features
Session VWAP
The main VWAP line resets at the beginning of each trading day and tracks the volume-weighted average price throughout the session.
VWAP Bands
The upper and lower bands are calculated using the volume-weighted standard deviation around VWAP. They provide a dynamic view of how far price has moved from the session's volume-weighted mean.
VWAP Crosses
Optional markers highlight when price crosses above or below VWAP, helping identify changes in price location relative to the session's average.
How to Read It
Price above VWAP
Price is trading above the session's volume-weighted average.
Price below VWAP
Price is trading below the session's volume-weighted average.
Price near VWAP
The market is trading close to its volume-weighted mean, which can indicate a period of balance.
Upper or Lower Band
Price reaching the outer bands indicates a larger deviation from VWAP. This does not automatically mean that a reversal will occur.
Important Note
VWAP is a reference tool, not a standalone trading signal. Price can remain above or below VWAP for extended periods, particularly during strong directional markets.
Disclaimer
This indicator is provided for educational and informational purposes only. It does not constitute financial, investment, trading, or other professional advice.
Past market behavior does not guarantee future results. Trading financial markets involves substantial risk. Always conduct your own research and apply appropriate risk management before making trading decisions.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.