CaperAsh

VWAP Bands

1272 2 125
Draws two bands above/below VWAP ,; input defines nr of points for bandwidth. Outer bands are simply double the value of inner bands. Helpful for intraday counter-trend trades anticipating pullbacks to VWAP . Gives instant snapshot of market showing if a trending or non-trend day. VWAP is the same across all timeframes but points will need to be adjusted. Another indicator is based on ATR so works better in multiple timeframes.
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study("VWAP Bands")
points = input(0.150), env = points, upperband = vwap+env, lowerband = vwap-env
overlay = true
plot(upperband,linewidth=1,style=cross,color=blue)
plot(lowerband,linewidth=1,style=cross,color=yellow)
plot(vwap+(env*2),style=cross,linewidth=1,color=blue)
plot(vwap-(env*2),style=cross,linewidth=1,color=yellow)
plot(vwap,style=cross,linewidth=1,color=fuchsia)
CaperAsh
2 years ago
I didn't realise when I wrote these that other people see them. It's fine. But am not familiar with the script and had to dick around a little. I like this version the best now: just points. The reason is that once you have set the bandwidth for a particular chart (5 min SPY for example), you then know the exact amount between the bands which makes it easier to estimate the point value of entries and profit targets. For example, I have it set at .20 for this chart which is the equivalent of 2 emini points. Based on daily volatility which is easily seen (is market between the inner bands, the outer bands or beyond etc.), can adjust profit targets for small day-trade entries.

The main intention behind this indicator is twofold:
1. To give snapshot reading of market type: up day, down day, traderange day, wide day, narrow day.
2. To provide entry and exit levels for simple day-trades anticipating a return to the VWAP or oscillating above/below it, so the bands provide clear levels with point values to make it easier to visually see risk-reward with any contemplated entries/stops/profit targets.
+1 Reply
IvanLabrie TOP CaperAsh
2 years ago
You should add a market profile histogram to this, and POC. :D
Reply
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