CaperAsh

VWAP Bands

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.
Remove from Favorite Scripts Add to Favorite Scripts
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)
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.
+2 Reply
You should add a market profile histogram to this, and POC. :D
Reply
English
English (UK)
English (IN)
Deutsch
Français
Español
Italiano
Polski
Türkçe
Русский
Português
Bahasa Indonesia
Bahasa Melayu
ภาษาไทย
Tiếng Việt
日本語
한국어
简体
台灣
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out