With this indicator, the VWAP is displayed based on two adjustable sources. Close and Open are recommended by default.
The zone between the Open and Close VWAP is carried over to the next day as the zone at the end of the period.
The zones can be considered as support and resistance zones.
The chart illustrates the idea behind it.
In addition, the anchor function has been added so that anchor points can be set for session, week and month.
Depending on the set anchor and the selected time unit of the chart, an adjustment of the indicator to the time unit can be made.
Recommended time unit of the indicator: Session = 15 min / Weekly = 1H / Month = 4H
In addition, the zones between VWAP close and vwap open have been colored.
Bullish when the close is above the open price and bearish when the close is below the open price.
The principle is simple. If the average closing price is below the average opening price, a downtrend is to be assumed and vice versa an uptrend.
The data points for start and end points were made more precise to obtain more accurate zones. It is now no longer mandatory to choose an indicator time unit but still possible.
The start zones have also been added. So we have one support or resistance based on the VWAP start point and one on its end point.
Depending on the trading style, this can be used or interpreted differently.
Two additional displays have been added:
1. the standard deviation bands have been added
2. reset zones have been added for the bands as well.
Both can be turned on or off separately to keep a better overview.
Depending on the time unit used, it is recommended to adjust the indicator time unit. Also not every anchor makes sense for every time unit. Try it out and see what happens when you adjust it.
Session = 1 - 15 min / Indicator time setting = 1 min
Week = 30 min - 4 hrs / indicator setting = 15 min - 1 hr
Month or Year = 4 hrs - 1 week / Indicator setting = 1 - 4
The code has been made much slower.
The second VWAP can be set separately, but only the Reset and Start zones are displayed.
The display of the bands and their reset zones is only possible in the first VWAP. The display of these in the VWAP 2 exceeds the capacity of Pinescript because more than 64 lines would have to be drawn since the zones are calculated and filled on closing and opening rate.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.