PROTECTED SOURCE SCRIPT
VWAP StdDev Bands v1[JopAlgo]
VWAP StdDev Bands v1 [JopAlgo] — value, stretch, and exhaustion around a session anchor
Core idea
This plots a session VWAP (volume-weighted average price) and two standard-deviation bands above/below it. It resets by Day / Week / Month (you choose). Read it as:
Value → the VWAP is where most business clears.
Stretch → the inner band (≈ ±1σ) is a normal excursion from value.
Exhaustion → the outer band (≈ ±2σ) is an uncommon excursion that often mean-reverts—unless the trend is very strong.
Think “how far from value are we” rather than “what’s the indicator doing.”
What you’ll see
VWAP line that changes color: above price = potential resistance, below price = potential support.
Inner bands (1× stdev) and Outer bands (2× stdev) with optional fills.
A Reset Period selector → Day, Week, or Month.
Read it fast → What’s the VWAP slope? Are we above or below it? Did price tag 1× or 2× and bounce, reject, or accept?
How the levels behave (and what to do)
VWAP → baseline value. In trend, pullbacks to VWAP often continue the move; in balance, VWAP is a magnet.
±1× band (inner) → “normal” stretch. In trend, first touches here often bounce back with the trend. In chop, tags often revert to VWAP.
±2× band (outer) → statistically rare stretch. Two common outcomes:
Reversion → tag ±2×, stall/wick, rotate back toward ±1× → VWAP.
Power trend → price walks the outside band; you ride pullbacks to ±1× instead of fading.
Practical tell → Distance from VWAP in “σ” terms =
(
𝑝
𝑟
𝑖
𝑐
𝑒
−
𝑣
𝑤
𝑎
𝑝
)
/
𝑠
𝑡
𝐷
𝑒
𝑣
(price−vwap)/stDev. > 2 ≈ extreme; 1–2 ≈ stretched; < 1 ≈ near value.
How to use it (simple playbook)
Direction filter
Up bias → VWAP is rising and price is holding above.
Down bias → VWAP is falling and price is holding below.
Entry templates
Trend pullback → continuation
→ Up bias, pullback to VWAP or −1×, hold/reclaim, higher-low → enter long.
→ Targets → +1× → +2×; trail behind swings.
→ Mirror for shorts with VWAP / +1× in a downtrend.
Stretch fade (mean-revert)
→ In balance or late trend: tag +2×, momentum slows, CVD shows absorption, fail to accept beyond → short back to +1× → VWAP.
→ Mirror at −2× for longs.
Break + hold (expansion)
→ Tight market around VWAP; close through +1× with strong participation; small pullback holds +1× → continuation long toward +2×.
→ Mirror for −1× → −2× on shorts.
Location first (always)
Execute at real references: Volume Profile v3.2 [JopAlgo] (VAH/VAL/POC/LVNs) and Anchored VWAP [JopAlgo].
No level → no trade. VWAP bands + location remove most bad chases.
Entries, exits, risk
Stops → just beyond the band/level you used (e.g., below −1× on a trend-pullback long; beyond the ±2× wick on a fade).
Targets → ladder band → VWAP → opposite band or to VP nodes (POC/HVNs).
Management → if price accepts beyond your band (multiple closes), treat it as regime change and adjust.
Settings that matter (and how to tune)
VWAP Reset Period
Day → most reactive; good for intraday. Can be noisy on 24/7 crypto.
Week → steadier anchor; popular for 4H crypto swing.
Month → slow macro anchor; great for context, less for timing.
Inner/Outer multipliers
Defaults 1× and 2× approximate ±1σ / ±2σ.
Increase multipliers to reduce signals on volatile pairs; decrease to see more tags.
Band visibility / fills
If chart is busy, start with outer bands only. Add inner later for pullback timing.
Starter presets
Intraday (15m–1H) → Reset Day, Inner 1×, Outer 2×
Swing (4H) → Reset Week, Inner 1×, Outer 2×
High-vol pairs → consider 1.5× / 2.5× to avoid constant “extremes”
Pattern cheat sheet
First touch, strong trend → VWAP / ±1× acts like a trampoline → trade with trend.
Late push into +2× with lower momentum → fade back to +1× / VWAP.
Walk the band → repeated closes riding +2× (or −2×) → stop fading; buy pullbacks to +1× (or sell to −1×).
Flip at VWAP → lose VWAP and hold underneath → expect rotation toward the opposite bands.
Best combos (kept simple)
Volume Profile v3.2 [JopAlgo] → confluence at VAH/VAL/POC/LVNs upgrades any VWAP-band signal.
Anchored VWAP [JopAlgo] → a reclaim/reject of an AVWAP at a band is high-quality timing.
CVDv1 [JopAlgo] (optional) → take trades when taker flow aligns; skip if absorption fights your side.
Common mistakes this helps you avoid
Chasing far past +1× toward +2× without a pullback.
Fading power trends that walk the band (wait for acceptance loss first).
Trading mid-air between VWAP and bands with no level.
Using a Day reset on 4H crypto and calling every move an extreme—use Week for a steadier anchor.
Disclaimer
This indicator and write-up are for education only, not financial advice. Trading involves risk; results vary by market, venue, and settings. Test first, act at defined levels, and manage risk. No guarantees or warranties are provided.
Core idea
This plots a session VWAP (volume-weighted average price) and two standard-deviation bands above/below it. It resets by Day / Week / Month (you choose). Read it as:
Value → the VWAP is where most business clears.
Stretch → the inner band (≈ ±1σ) is a normal excursion from value.
Exhaustion → the outer band (≈ ±2σ) is an uncommon excursion that often mean-reverts—unless the trend is very strong.
Think “how far from value are we” rather than “what’s the indicator doing.”
What you’ll see
VWAP line that changes color: above price = potential resistance, below price = potential support.
Inner bands (1× stdev) and Outer bands (2× stdev) with optional fills.
A Reset Period selector → Day, Week, or Month.
Read it fast → What’s the VWAP slope? Are we above or below it? Did price tag 1× or 2× and bounce, reject, or accept?
How the levels behave (and what to do)
VWAP → baseline value. In trend, pullbacks to VWAP often continue the move; in balance, VWAP is a magnet.
±1× band (inner) → “normal” stretch. In trend, first touches here often bounce back with the trend. In chop, tags often revert to VWAP.
±2× band (outer) → statistically rare stretch. Two common outcomes:
Reversion → tag ±2×, stall/wick, rotate back toward ±1× → VWAP.
Power trend → price walks the outside band; you ride pullbacks to ±1× instead of fading.
Practical tell → Distance from VWAP in “σ” terms =
(
𝑝
𝑟
𝑖
𝑐
𝑒
−
𝑣
𝑤
𝑎
𝑝
)
/
𝑠
𝑡
𝐷
𝑒
𝑣
(price−vwap)/stDev. > 2 ≈ extreme; 1–2 ≈ stretched; < 1 ≈ near value.
How to use it (simple playbook)
Direction filter
Up bias → VWAP is rising and price is holding above.
Down bias → VWAP is falling and price is holding below.
Entry templates
Trend pullback → continuation
→ Up bias, pullback to VWAP or −1×, hold/reclaim, higher-low → enter long.
→ Targets → +1× → +2×; trail behind swings.
→ Mirror for shorts with VWAP / +1× in a downtrend.
Stretch fade (mean-revert)
→ In balance or late trend: tag +2×, momentum slows, CVD shows absorption, fail to accept beyond → short back to +1× → VWAP.
→ Mirror at −2× for longs.
Break + hold (expansion)
→ Tight market around VWAP; close through +1× with strong participation; small pullback holds +1× → continuation long toward +2×.
→ Mirror for −1× → −2× on shorts.
Location first (always)
Execute at real references: Volume Profile v3.2 [JopAlgo] (VAH/VAL/POC/LVNs) and Anchored VWAP [JopAlgo].
No level → no trade. VWAP bands + location remove most bad chases.
Entries, exits, risk
Stops → just beyond the band/level you used (e.g., below −1× on a trend-pullback long; beyond the ±2× wick on a fade).
Targets → ladder band → VWAP → opposite band or to VP nodes (POC/HVNs).
Management → if price accepts beyond your band (multiple closes), treat it as regime change and adjust.
Settings that matter (and how to tune)
VWAP Reset Period
Day → most reactive; good for intraday. Can be noisy on 24/7 crypto.
Week → steadier anchor; popular for 4H crypto swing.
Month → slow macro anchor; great for context, less for timing.
Inner/Outer multipliers
Defaults 1× and 2× approximate ±1σ / ±2σ.
Increase multipliers to reduce signals on volatile pairs; decrease to see more tags.
Band visibility / fills
If chart is busy, start with outer bands only. Add inner later for pullback timing.
Starter presets
Intraday (15m–1H) → Reset Day, Inner 1×, Outer 2×
Swing (4H) → Reset Week, Inner 1×, Outer 2×
High-vol pairs → consider 1.5× / 2.5× to avoid constant “extremes”
Pattern cheat sheet
First touch, strong trend → VWAP / ±1× acts like a trampoline → trade with trend.
Late push into +2× with lower momentum → fade back to +1× / VWAP.
Walk the band → repeated closes riding +2× (or −2×) → stop fading; buy pullbacks to +1× (or sell to −1×).
Flip at VWAP → lose VWAP and hold underneath → expect rotation toward the opposite bands.
Best combos (kept simple)
Volume Profile v3.2 [JopAlgo] → confluence at VAH/VAL/POC/LVNs upgrades any VWAP-band signal.
Anchored VWAP [JopAlgo] → a reclaim/reject of an AVWAP at a band is high-quality timing.
CVDv1 [JopAlgo] (optional) → take trades when taker flow aligns; skip if absorption fights your side.
Common mistakes this helps you avoid
Chasing far past +1× toward +2× without a pullback.
Fading power trends that walk the band (wait for acceptance loss first).
Trading mid-air between VWAP and bands with no level.
Using a Day reset on 4H crypto and calling every move an extreme—use Week for a steadier anchor.
Disclaimer
This indicator and write-up are for education only, not financial advice. Trading involves risk; results vary by market, venue, and settings. Test first, act at defined levels, and manage risk. No guarantees or warranties are provided.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
@jopalgo | [JopAlgo] — Indicators & strategies. Clear rules, no chasing. Education only. Not financial advice.
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.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
@jopalgo | [JopAlgo] — Indicators & strategies. Clear rules, no chasing. Education only. Not financial advice.
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.