Date-Anchored VWAP with Standard Deviation Bands

Summary

This indicator calculates volume-weighted average price from a user-selected calendar date, allowing a chart reader to track the average traded price since a chosen event. The article suggests anchoring it to a recent price gap on a daily chart to inspect the average price since that session. The calculation weights typical price by volume and divides the cumulative total by cumulative volume.

An optional setting displays three upper and three lower bands. These are formed by adding or subtracting one, two, or three multiples of an average distance based on each bar’s high and low relative to VWAP. The plotted VWAP changes color according to whether it is rising or falling. This is an indicator implementation, not a tested trading strategy: the post gives no performance evidence, trading rules, or validation that its band calculation corresponds to conventional statistical standard deviations. Interpretation also depends on the selected anchor date and the data available from that point.

Key ideas

• The indicator starts its VWAP calculation from a configurable calendar date.
• It weights typical price by volume and divides by cumulative volume.
• An optional setting plots three bands above and below VWAP using average high-low distances from the line.
• The indicator colors VWAP according to whether it rose or fell from the prior bar.
• The article provides no backtest or evidence that the bands produce profitable signals.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.