DeltaATR + VWAP DIF + MA's

22 nov

I attempted to create an indicator using a different approach to analyzing potential trend reversals, and although it is still a work in progress, it is already fully functional. The indicator combines the price relative to VWAP with ATR normalization, providing a way to measure deviations in terms of market volatility.

How the indicator works:

Delta Calculation:
The core of the indicator calculates the difference between the current price and the VWAP (Volume Weighted Average Price), then normalizes this difference by the ATR (Average True Range). This provides a volatility-adjusted measure of how far the price has moved relative to its typical range.

Histogram Visualization:
The deltaATR is displayed as a histogram, where positive values indicate the price is above VWAP and negative values indicate it is below. The histogram is color-coded for easy interpretation: typically red for above VWAP and green for below, with configurable transparency.

Dual Moving Averages:
Two moving averages (fast and slow) are applied to the deltaATR. This creates a crossover system:

When the fast average crosses above the slow average, it may indicate an upcoming bullish reversal.

When the fast average crosses below the slow average, it may indicate a potential bearish reversal.

Zero Line Reference:
A reference line at zero corresponds to VWAP, helping traders see whether price is generally above or below the average volume-weighted level.

Alert Lines (Optional Panel):
A second panel provides four configurable alert lines, allowing users to set key thresholds to monitor extreme deltaATR values. These lines are thin, dashed, and fully customizable in terms of color and thickness.

Panel for Values and Signals:
The indicator includes a side panel showing:

Current deltaATR

Fast and slow averages

Current trend signal (Bullish, Bearish, or Neutral)

How it can be used:

Identify potential trend reversals by monitoring the crossover between the fast and slow averages of deltaATR.

Use the histogram to observe when the price is deviating significantly from VWAP in terms of ATR.

Set alert lines for specific thresholds to highlight overextended conditions or significant volatility moves.

Combine with other technical indicators for confirmation before entering or exiting trades.

This indicator is particularly useful for traders looking to anticipate reversals in volatile markets, as it adapts the delta measure to the current market conditions using ATR normalization, making it more responsive and robust than raw price deviations alone.

5 giorni fa

Note di rilascio

ueuito DeltaATR + VWAP DIF + Moving Averages —(Proximity Shapes & Heat Zones)

Overview:
This indicator visualizes the difference between price and VWAP, normalized by a smoothed ATR (DeltaATR), along with fast and slow moving averages of DeltaATR. It provides a clean and configurable histogram, heat zones, and proximity signals (discrete crosses and dots) for clear trend and crossover analysis.

Key Features:

DeltaATR Histogram

Displays the difference between price and VWAP, divided by a smoothed ATR.

Histogram bars are dynamically colored according to intensity or a fixed color scheme.

Width and visual style of histogram bars are configurable.

Moving Averages of DeltaATR

Fast and slow SMA applied to DeltaATR.

Colors are fully customizable.

Provides visual trend reference and forms the basis for cross signals.

Crossover Signals

Green cross marks bullish crossover: Fast MA crosses above Slow MA.

Red cross marks bearish crossover: Fast MA crosses below Slow MA.

Crosses are discretely positioned just above the histogram bars, ensuring minimal interference with the chart.

Cross color and size are fully configurable.

Proximity Dots (Above/Below Fast MA)

Small circles indicate whether the DeltaATR is above or below the Fast MA.

Positioned slightly above or below the histogram bars for readability without overlap.

Dot color and size are customizable.

Heat Zones

Horizontal zones for visual “heat” mapping: High, Mid High, Mid Low, and Low.

Each zone has configurable color and opacity.

Optional outline visibility in “premium” style mode.

Right-Side Panel

Displays current DeltaATR, Fast MA, and Slow MA values.

Panel visibility toggle allows hiding without affecting the chart.

Panel position is fixed to the right of the indicator for easy reading.

Visual Styles

Three visual styles: Minimal (A), Dashboard (B), Premium (C).

Styles affect panel transparency, histogram opacity, and heat zone overlays.

Configurable Parameters

ATR period, smoothing factor, histogram width.

Fast/Slow MA lengths and colors.

Dot and cross sizes/colors.

Histogram color mode (Dynamic vs Fixed).

Heat zone thresholds and colors.

Background Customization

Panel-like background color with configurable transparency.

How It Works

DeltaATR Calculation:

DeltaATR=Close−VWAP
Smoothed ATR
DeltaATR=Smoothed ATR Close−VWAP
​


Fast/Slow Moving Averages:

Calculated using simple moving average (SMA) on DeltaATR.

Crossovers of these MAs trigger discrete signals.

Discrete Signals:

Crosses: Only appear at Fast/Slow MA crossovers.

Dots: Appear above/below the Fast MA depending on DeltaATR value.

Signals are slightly offset from the histogram for readability.

Heat Zones:

Visual horizontal bands help quickly identify extreme DeltaATR values.

Benefits

Quickly identifies bullish and bearish crossovers of DeltaATR moving averages.

Allows for visual trend and momentum analysis with minimal chart clutter.

Configurable visual signals reduce cognitive load and improve chart readability.

Heat zones provide context for overbought/oversold or high/low momentum situations.

Recommended Usage

Combine with your favorite price chart to identify potential entries and exits based on DeltaATR trends.

Use the discrete proximity signals for confirming alignment with other technical indicators.

Adjust heat zone levels to fit the volatility and time frame of your instrument.

Note:
All signals, colors, sizes, and visual parameters are fully configurable via the indicator settings, allowing you to adapt the indicator to different charts, instruments, and visual preferences.