This calculates normal distance of price from VWAP. This is a mean reverting idea (something like ZScore), but using both "volume" and "close".
Useful for finding OB/OS areas and potential turning points.
Complete list of my indicators:
Useful for finding OB/OS areas and potential turning points.
Complete list of my indicators:
List of my free indicators: bit.ly/1LQaPK8
List of my indicators at Appstore: blog.tradingview.com/?p=970
List of my indicators at Appstore: blog.tradingview.com/?p=970
// // @author LazyBear // List of all my indicators: https://www.tradingview.com/v/4IneGo8h/ // study("Z distance from VWAP [LazyBear]", shorttitle="ZVWAP_LB") length=input(20) calc_zvwap(pds) => mean = sum(volume*close,pds)/sum(volume,pds) vwapsd = sqrt(sma(pow(close-mean, 2), pds) ) (close-mean)/vwapsd plot(0) upperTop=input(2.5) upperBottom=input(2.0) lowerTop=input(-2.5) lowerBottom=input(-2.0) plot(1, style=3, color=gray), plot(-1, style=3, color=gray) ul1=plot(upperTop, "OB High") ul2=plot(upperBottom, "OB Low") fill(ul1,ul2, color=red) ll1=plot(lowerTop, "OS High") ll2=plot(lowerBottom, "OS Low") fill(ll1,ll2, color=green) plot(calc_zvwap(length),title="ZVWAP",color=maroon, linewidth=2)