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VWAP + Volume Profile Confluence
VWAP + Volume Profile Confluence — trade the zones where anchored VWAP bands and Volume Profile levels intersect.
What It Does
This indicator overlays three analytical layers and highlights the moments they align:
Layer What You See
Anchored VWAP with ±Nσ bands The session's fair-value centreline plus dynamic volatility bands. VWAP is colour-coded by slope — teal rising, grey flat, red falling — so you know the session's directional bias at a glance.
Volume Profile (POC + Value Area) The session's most-traded price (POC) and the 70% Value Area High/Low. These represent zones where the market has done real business — not arbitrary lines.
Confluence signals Background fill fires when VWAP bands align with VP levels. Green = support confluence. Red = resistance confluence. Three signal types are detected, ordered by conviction:
Signal Hierarchy
Signal What It Means Conviction
Reversal A VWAP band (±Nσ) touches a VP level (POC or VA boundary). Price at the edge of fair value AND at a volume node = high-probability reaction zone. ⬛ Highest
Pullback Price pulls back near VWAP while trend is sustained (price above VWAP for 10+ bars). Classic "buy the dip / sell the rip" setup. ◧ Medium
Continuation Price rides above/below VWAP directionally without touching a band. Momentum in flow — trend-follow context. ◻ Lower
Why It Works
VWAP bands are dynamic S/R — price reverts to VWAP ~70% of any session, and ±2σ marks the edge of "fair" auction. Rejection at a band signals exhaustion.
Volume Profile levels are institutional footprints — the POC is where the largest volume pool sits; it's the session's "fair price" and often acts as a magnet or pivot.
When they align, you have two independent frameworks agreeing on a level — that's higher-probability than either alone.
Usage
Timeframe: Best on intraday charts (15m–1H) with Daily anchor. Use Weekly anchor for a multi-day smoothed VWAP.
Entries: Enter on price confirmation at a confluence zone (bullish signal + bullish price action = long; bearish signal + bearish PA = short).
Stops: Opposite side of the confluence zone or the session's prior swing.
Targets: Next VWAP band, VP level, or prior session high/low.
Std Dev Multiplier: 2.0 is standard. Widen to 2.5 for volatile instruments; narrow to 1.5 for slow/stable ones.
Slope Sensitivity: Default 10% works across instruments. Lower = more colour changes.
Inputs
All settings are exposed with tooltip explanations. Key ones:
Anchor Period — Daily or Weekly VWAP/VP reset
Std Dev Multiplier — Band width (default 2.0)
Confluence Threshold % — How tight VWAP→VP alignment must be to signal (lower = stricter)
Slope Lookback / Sensitivity — Controls VWAP colour-coding responsiveness
Notes
VP levels (POC, VA High/Low) are plotted as steplines — they don't drift through historical bars. Each level is anchored to its session.
Works on any instrument: stocks, indices, forex, crypto. Slope normalisation self-adjusts across volatility regimes.
All components (VWAP, bands, POC, VA, confluence fill) can be toggled independently in settings.
What It Does
This indicator overlays three analytical layers and highlights the moments they align:
Layer What You See
Anchored VWAP with ±Nσ bands The session's fair-value centreline plus dynamic volatility bands. VWAP is colour-coded by slope — teal rising, grey flat, red falling — so you know the session's directional bias at a glance.
Volume Profile (POC + Value Area) The session's most-traded price (POC) and the 70% Value Area High/Low. These represent zones where the market has done real business — not arbitrary lines.
Confluence signals Background fill fires when VWAP bands align with VP levels. Green = support confluence. Red = resistance confluence. Three signal types are detected, ordered by conviction:
Signal Hierarchy
Signal What It Means Conviction
Reversal A VWAP band (±Nσ) touches a VP level (POC or VA boundary). Price at the edge of fair value AND at a volume node = high-probability reaction zone. ⬛ Highest
Pullback Price pulls back near VWAP while trend is sustained (price above VWAP for 10+ bars). Classic "buy the dip / sell the rip" setup. ◧ Medium
Continuation Price rides above/below VWAP directionally without touching a band. Momentum in flow — trend-follow context. ◻ Lower
Why It Works
VWAP bands are dynamic S/R — price reverts to VWAP ~70% of any session, and ±2σ marks the edge of "fair" auction. Rejection at a band signals exhaustion.
Volume Profile levels are institutional footprints — the POC is where the largest volume pool sits; it's the session's "fair price" and often acts as a magnet or pivot.
When they align, you have two independent frameworks agreeing on a level — that's higher-probability than either alone.
Usage
Timeframe: Best on intraday charts (15m–1H) with Daily anchor. Use Weekly anchor for a multi-day smoothed VWAP.
Entries: Enter on price confirmation at a confluence zone (bullish signal + bullish price action = long; bearish signal + bearish PA = short).
Stops: Opposite side of the confluence zone or the session's prior swing.
Targets: Next VWAP band, VP level, or prior session high/low.
Std Dev Multiplier: 2.0 is standard. Widen to 2.5 for volatile instruments; narrow to 1.5 for slow/stable ones.
Slope Sensitivity: Default 10% works across instruments. Lower = more colour changes.
Inputs
All settings are exposed with tooltip explanations. Key ones:
Anchor Period — Daily or Weekly VWAP/VP reset
Std Dev Multiplier — Band width (default 2.0)
Confluence Threshold % — How tight VWAP→VP alignment must be to signal (lower = stricter)
Slope Lookback / Sensitivity — Controls VWAP colour-coding responsiveness
Notes
VP levels (POC, VA High/Low) are plotted as steplines — they don't drift through historical bars. Each level is anchored to its session.
Works on any instrument: stocks, indices, forex, crypto. Slope normalisation self-adjusts across volatility regimes.
All components (VWAP, bands, POC, VA, confluence fill) can be toggled independently in settings.
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.