VWAP Bands with Volume and Deviation Settings

Summary

This indicator builds bands around volume-weighted average price (VWAP), using VWAP as the center in place of the simple moving average used by Bollinger Bands. It provides a way to view price relative to a volume-weighted reference and its surrounding deviations. The description explains configuration options rather than a complete trading strategy or a method for interpreting band touches.

Users can choose tick volume or real volume when the instrument and broker provide real-volume data. They can also choose whether the deviation calculation applies sample correction, and can show or hide each band independently. A band is omitted when its deviation multiplier is zero or negative. The document gives no tested signals, performance results, or guidance for choosing volume or deviation settings, so it does not establish that the bands predict reversals or define reliable entry and exit rules.

Key ideas

• The indicator centers its bands on VWAP rather than a simple moving average.
• Users can select tick volume or real volume when real-volume data is available.
• The deviation calculation can include or omit sample correction.
• Each band can be enabled or disabled, and nonpositive multipliers suppress its calculation.
• The description provides configuration options but no trading rules or performance evidence.

Tags

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