Zigzag Tails [Trendoscope®] 🎲 Introducing Zigzag Tails Indicator by Trendoscope.
The Zigzag Tails Indicator, a groundbreaking tool from Trendoscope, redefines technical analysis by seamlessly integrating anchored VWAPs (Volume Weighted Average Prices) and Average Price calculations with Zigzag pivot points. This advanced indicator recalculates Average Price or VWAP from one Zigzag pivot to the next, offering unparalleled insights into market movements.
🎯 Innovative Design
Each Zigzag pivot can feature up to three distinct tails, corresponding to the high, low, and close prices of each candle. Users have the flexibility to select between Average Price and VWAP for display on their charts. By default, the indicator plots all three tails, but individual tail visibility is customizable via the settings panel.
Average Price Mode: When selected, tails depict the average price across a specified number of bars.
VWAP Mode: In this mode, tails represent the VWAP, calculated for a given price over a set number of bars.
🎯 Dynamic Dotted Tail
The Zigzag Tails Indicator features dotted tails that extend from the last Zigzag pivot to the current bar. These dotted tails dynamically adapt to market changes and are subject to repainting with the emergence of new Zigzag pivots.
When repainting is enabled, the dotted tails originate from the last unconfirmed Zigzag pivot, extending to the current bar. This setting offers a more immediate, albeit tentative, visual representation of market trends.
With repainting disabled, the dotted tails will be anchored from the last confirmed Zigzag pivot to the current bar, providing a more stable but slightly delayed market analysis.
Irrespective of the repaint option, the dotted dynamic tails is always expected to repaint.
🎯 Practical Applications
The Zigzag Tails Indicator provides more accurate support and resistance levels than traditional VWAP, rolling VWAP, or moving averages. Its precision makes it an invaluable tool for identifying trends, as well as potential trend continuations or reversals.
🛠 Indicator Settings
Zigzag Configuration:
Zigzag Length determines the loopback length for the foundational Zigzag calculation.
Number of Bars represent the calculation distance. This limitation is added to avoid runtime errors on lower timeframes. The calculations run through lots of loops. Hence, if it is run across too many bars, we may get timeout issues.
Repaint: Activating this will also display the last, unconfirmed Zigzag pivot. Since the last pivot is inherently tentative, it may repaint with the arrival of new bars. A pivot is confirmed only when a subsequent unconfirmed pivot emerges on the chart.
Tail Configuration
Tail Type: Choose between average and VWAP for the tail calculation. The average option plots a simple average, while the VWAP option calculates an anchored VWAP from pivot to pivot.
Display Options: Tailored display options for High, Low, Close prices, with customizable colors for each tail type.
Inspired by the ideas of @KioseffTrading's implementation of Zigzag Anchored VWAP
Prezzo medio ponderato con i volumi (VWAP)
Temporary imbalances 2.0 This indicator attempts to calculate potential points of imbalance and equilibrium based on VWAPs and modified moving averages. The idea is to determine if there has been a change in volume and perform the calculation from that point It uses the standard deviation to determine the significant imbalance threshold. Candles with bullish imbalances are highlighted in green, while candles with bearish imbalances are highlighted in red.
"It also features a set of VWAPs and modified moving averages that you can enable or disable."
When you activate the 'Show Anchor VWAP' option, it will add five modified VWAPs.
Practical Significance:
The Anchored VWAP is a volume-weighted average price that serves as a dynamic reference to assess the average price during specific moments of market imbalance.
During a bullish imbalance, the anchor_vwap reflects the VWAP at that moment, emphasizing price behavior during that specific period.
Similarly, in a bearish imbalance, the anchor_vwap provides the associated VWAP for that condition, highlighting price movements during the imbalance phase.
How to Use:
The anchor_vwap can be employed to contextualize the volume-weighted average price during critical moments associated with significant changes in market imbalance.
By analyzing price behavior during and after periods of imbalance, the Anchored VWAP can help better understand market dynamics and identify potential areas of support or resistance.
Show VWAP Percent Imbalance"
Definition: Represents the Volume Weighted Average Price (VWAP) adjusted by the volume-weighted average of the price multiplied by volume, with a focus on conditions where the percentage volume variation surpasses a predefined threshold.
Calculation: Utilizes the simple moving average weighted of the product of the volume-weighted average price and volume only when the percentage volume variation exceeds a specific threshold.
Interpretation: Provides insight into the volume-weighted price trend during conditions where the percentage volume variation exceeds a predefined limit.
The "showDeltaVWAP" is a toggleable setting that you can turn on or off. When activated, it displays special lines on the chart. Let's understand what these lines represent:
Delta Anchor VWAP:
A green line (Delta Anchor VWAP) represents a measure of market volume imbalance.
Delta2 Anchor VWAP:
A red line (Delta2 Anchor VWAP) shows another perspective of volume imbalance.
VWAP Delta Volume:
A light blue line (VWAP Delta Volume) displays a volume-weighted average of price.
VWAP Delta Volume2:
An orange line (VWAP Delta Volume2) shows another view of the volume-weighted average of price.
Delta3 Anchor VWAP:
A light blue line (Delta3 Anchor VWAP) represents a combination of the previous measures.
Delta4 Anchor VWAP:
A purple line (Delta4 Anchor VWAP) is another combination, providing an overall view.
These lines are based on different conditions and calculations related to trading volume. When you activate "showDeltaVWAP," these lines appear on the chart, aiding in better understanding market behavior.
"Show Faster Volatility" is an option that you can enable or disable. When activated (set to true), it displays special lines on the chart called "Faster Volatility VWAP," "Faster Volatility VWAP2," and "Faster Volatility VWAP3." Let's understand what these lines represent:
Faster Volatility VWAP:
A purple line (Faster Volatility VWAP) is a Volume Weighted Average Price (VWAP) that is calculated more quickly based on short-term price reversal patterns.
Faster Volatility VWAP2:
A light gray line (Faster Volatility VWAP2) is another Volume Weighted Average Price (VWAP) that is calculated even more quickly based on even shorter-term price reversal patterns.
Faster Volatility VWAP3:
A purple line (Faster Volatility VWAP3) is another Volume Weighted Average Price (VWAP) calculated rapidly based on even shorter-term price reversal patterns.
These lines are designed to indicate moments of possible exhaustion of volatility in the market, suggesting that there may be a subsequent increase in volatility. When you activate "Show Faster Volatility," these lines are displayed on the chart.
"Show Average VWAPs Imbalance" displays weighted averages of different Volume Weighted Average Prices (VWAPs) in relation to specific market conditions. Here's an explanation of each component:
Standard VWAP:
The blue line represents the standard VWAP, a volume-weighted average of asset prices over a specific period.
VWAP with Added Imbalance (avg_vwap2):
The pink line is a weighted average that adds an imbalance value to the standard VWAP. This component highlights periods of market imbalance.
VWAP with Balance (avg_vwap3):
The lilac line is a weighted average that adds balance based on the imbalance between uptrend and downtrend, reflecting changes in volume. This provides insights into supply and demand dynamics.
Overall Average of VWAPs (avg_vwaptl):
The violet line is a weighted average that incorporates both standard and adjusted VWAPs, offering an overview of market behavior under different considered conditions.
Visual Customization (Show Average VWAPs Imbalance):
Users have the option to show or hide these average lines on the chart, allowing for a clear visualization of market trends.
"Show Min Variation VWAP" is associated with the calculation and display of a smoothed version of the Volume Weighted Average Price (VWAP), taking into account the minimum price variation over a specific period.
"How Imbalance Anchor VWAP Calculated as the smoothed relationship between liquidity difference and maximum VWAP equilibrium" is associated with the calculation and display of a smoothed version of the Imbalance Anchor VWAP. Here is a detailed explanation:
Calculations and Smoothing:
The variable "smoothed_difference" represents the exponential moving average (EMA) of the difference between two variables related to liquidity.
"smoothed_difference2" is the division of "smoothed_difference" by the maximum variation of the VWAP Equilibrium.
"smoothed_difference3" involves additional manipulation of "smoothed_difference" and "vwap_delta3."
"smoothed_difference4" incorporates the previous results, adjusted by the value of the VWAP.
Visual Customization:
The user has the option to enable or disable the display on the chart.
The line is colored in a shade of green.
It provides a smoothed representation of the Imbalance Anchor VWAP.
The line is colored in a shade of blue, and the calculation involves the summation of moving averages (20, 50, 200). Afterward, there is division by 3. Additionally, there is the summation of moving averages (766, 866, 966), divided by 3. The final step is to add these results together and divide by 2. media name is Imbalance Value2
Show VWAP Equilibrium (Max Variation) Calculated as the difference between two VWAPs derived from the highest and lowest price changes
Show Equilibrium VWAP Calculated as the sum of VWAP and (sma200 - sma20)
calculate the difference between the media of 200 to 20
Show Equilibrium VWAP Calculated as the sum of VWAP and (766+866+966)/3 - (sma200 - sma20)
Show Equilibrium VWAP Standard Deviation Calculated as the Exponential Moving Average (EMA) of the Standard Deviation of SMA (sma200 + sma20 + sma8)/3
Show Equilibrium VWAP Delta Calculated as the ratio of the smoothed VWAP Delta Result componentes
Show Standard Deviation Equilibrium VWAP Delta: Calculated as the Standard Deviation between the Average of VWAP Delta Result Components and Their Smoothed Versions
This average attempts to calculate the equilibrium."
vwap_equilibrium:
Definition: Represents the Volume Weighted Average Price (VWAP) adjusted by the volume-weighted average of the price (hl2) multiplied by volume, focusing on periods of volume equilibrium.
Calculation: Utilizes the simple moving average weighted (sma) of the product of the volume-weighted average price and volume only when there is no volume imbalance.
Interpretation: This indicator provides a view of the volume-weighted price trend during moments when the market is in equilibrium, meaning there is no noticeable imbalance in volume conditions. The calculation of VWAP is adjusted to reflect market characteristics during periods of stability.
vwap_percent_condition:
Definition: Represents the Volume Weighted Average Price (VWAP) adjusted by the volume-weighted average of the price multiplied by volume, with a focus on conditions where the percentage volume variation surpasses a predefined threshold.
Calculation: Utilizes the simple moving average weighted of the product of the volume-weighted average price and volume only when the percentage volume variation exceeds a specific threshold.
Interpretation: Provides insight into the volume-weighted price trend during conditions where the percentage volume variation exceeds a predefined limit.
The objective of these two VWAPs is to calculate possible equilibrium points between buyers and sellers.
The indicator works for all timeframes This indicator can be adjusted according to the preferences and characteristics of the specific asset or market. It provides clear visual information and can be used as a complementary tool for technical analysis in trading strategies.
Interesting
Interesting
lookback period 7 , 12, 20,70,200, 500,766,866,966
imbalance threshold 2.4, 3.3 ,4.2
The objective of this indicator is to identify and highlight various points of imbalance and equilibrium.
VWAP Oscillator (Normalised)Thanks:
Thanks to upslidedown for his VWAP Oscillator that served as the inspiration for this normalised version.
Core Aspects:
The script calculates the VWAP by considering both volume and price data, offering a comprehensive view of market activity.
Uses an adaptive normalization function to balance the data, ensuring that the VWAP reflects current market conditions accurately.
The oscillator includes customizable settings such as VWAP source, lookback period, and buffer percentage.
Provides a clear visual representation of market trends.
Usage Summary:
Detect divergences between price and oscillator for potential trend reversals.
Assess market momentum with oscillator’s position relative to the zero line.
Identify overbought and oversold conditions to anticipate market corrections.
Use volume-confirmed signals for enhanced reliability in trend strength assessments.
Re-Anchoring VWAP TripleThe Triple Re-Anchoring VWAP (Volume Weighted Average Price) indicator is a tool designed for traders seeking a deeper understanding of market trends and key price levels. This indicator dynamically recalibrates VWAP calculations based on significant market pivot points, offering a unique perspective on potential support and resistance levels.
Key Features:
Dynamic Re-anchoring at All-Time Highs (ATH) : The first layer of this indicator continuously tracks the all-time high and recalibrates the VWAP from each new ATH. This VWAP line, typically acting as a dynamic resistance level, offers insights into the overbought conditions and potential reversal zones.
Adaptive Re-anchoring to Post-ATH Lows : The second component of the indicator shifts focus to the market's reaction post-ATH. It identifies the lowest low following an ATH and re-anchors the VWAP calculation from this point. This VWAP line often serves as a dynamic support level, highlighting key areas where the market finds value after a significant high.
Re-anchoring to Highs After Post-ATH Lows : The third element of this tool takes adaptation one step further by tracking the highest high achieved after the lowest low post-ATH. This VWAP line can act as either support or resistance, providing a nuanced view of the market's valuation in the recovery phase or during consolidation after a significant low.
Applications:
Trend Confirmation and Reversal Signals : By comparing the price action relative to the dynamically anchored VWAP lines, traders can gauge the strength of the trend and anticipate potential reversals.
Entry and Exit Points : By highlighting significant support and resistance areas, it assists in determining optimal entry and exit points, particularly in swing trading and mean reversion strategies.
Enhanced Market Insight : The dynamic nature of the indicator, with its shifting anchor points, offers a refined understanding of market sentiment and valuation changes over time.
Why Triple Re-Anchoring VWAP?
Traditional VWAP tools offer a linear view, often missing out on the intricacies of market fluctuations. The Triple Re-Anchoring VWAP addresses this by providing a multi-faceted view of the market, adapting not just to daily price changes but pivoting around significant market events. Whether you're a day trader, swing trader, or long-term investor, this indicator adds depth to your market analysis, enabling more informed trading decisions.
Examples:
OneThingToRuleThemAll [v1.4]This script was created because I wanted to be able to display a contextual chart of commonly used indicators for scalping and swing traders, with the ability to control the visual representation on the charts as their cross-overs, cross-unders, or changes of state happen in real time. Additionally, I wanted the ability to control how or when they are displayed. While looking through other community projects, I found they lacked the ability to full customize the output controls and values used for these indicators.
The script leverages standard RSI/MACD/VWAP/MVWAP/EMA calculations to help a trader visually make more informed decisions on entering or exiting a trade, depending on their understanding on what the indicators represent. Paired with a table directly on the chart, it allows a trader to quickly reference values to make more informed decisions without having to look away from the price action or look through multiple indicator outputs.
The main functionality of the indicator is controlled within the settings directly on the chart. There a user can enable the visual representations, or disable, and configure how they are displayed on the charts by altering their values or style types.
Users have the ability to enable/disable visual representations of:
The indicator chart
RSI Cross-over and RSI Reversals
MACD Uptrends and Downtrends
VWAP Cross-overs and Cross-unders
VWAP Line
MVWAP Cross-overs and Cross-unders
MVWAP Line
EMA Cross-overs and Cross-unders
EMA Line
Some traders like to use these visual indications as thresholds to enter or exit trades. Its best to find out which ones work the best with the security you are trying to trade. Personally, I use the table as a reference in conjunction with the RSI chart indicators to help me decide a logical trailing stop if I am scalping. Some users might like the track EMA200 crossovers, and have visual representations on the chart for when that happens. However, users may use the other indicators in other methods, and this script provides the ability to be able to configure those both visually and by value.
The pine script code is open source and itself is fairly straightforward, it is mostly written to provide the ultimate level of control the the user of the various indicators. Please reach out to me directly if you would like a further understanding of the code and an explanation on anything that may be unclear.
Enjoy :)
-dead1.
Machine Learning: VWAP [YinYangAlgorithms]Machine Learning: VWAP aims to use Machine Learning to Identify the best location to Anchor the VWAP at. Rather than using a traditional fixed length or simply adjusting based on a Date / Time; by applying Machine Learning we may hope to identify crucial areas which make sense to reset the VWAP and start anew. VWAP’s may act similar to a Bollinger Band in the sense that they help to identify both Overbought and Oversold Price locations based on previous movements and help to identify how far the price may move within the current Trend. However, unlike Bollinger Bands, VWAPs have the ability to parabolically get quite spaced out and also reset. For this reason, the price may never actually go from the Lower to the Upper and vice versa (when very spaced out; when the Upper and Lower zones are narrow, it may bounce between the two). The reason for this is due to how the anchor location is calculated and in this specific Indicator, how it changes anchors based on price movement calculated within Machine Learning.
This Indicator changes the anchor if the Low < Lowest Low of a length of X and likewise if the High > Highest High of a length of X. This logic is applied within a Machine Learning standpoint that likewise amplifies this Lookback Length by adding a Machine Learning Length to it and increasing the lookback length even further.
Due to how the anchor for this VWAP changes, you may notice that the Basis Line (Orange) may act as a Trend Identifier. When the Price is above the basis line, it may represent a bullish trend; and likewise it may represent a bearish trend when below it. You may also notice what may happen is when the trend occurs, it may push all the way to the Upper or Lower levels of this VWAP. It may then proceed to move horizontally until the VWAP expands more and it may gain more movement; or it may correct back to the Basis Line. If it corrects back to the basis line, what may happen is it either uses the Basis Line as a Support and continues in its current direction, or it will change the VWAP anchor and start anew.
Tutorial:
If we zoom in on the most recent VWAP we can see how it expands. Expansion may be caused by time but generally it may be caused by price movement and volume. Exponential Price movement causes the VWAP to expand, even if there are corrections to it. However, please note Volume adds a large weighted factor to the calculation; hence Volume Weighted Average Price (VWAP).
If you refer to the white circle in the example above; you’ll be able to see that the VWAP expanded even while the price was correcting to the Basis line. This happens due to exponential movement which holds high volume. If you look at the volume below the white circle, you’ll notice it was very large; however even though there was exponential price movement after the white circle, since the volume was low, the VWAP didn’t expand much more than it already had.
There may be times where both Volume and Price movement isn’t significant enough to cause much of an expansion. During this time it may be considered to be in a state of consolidation. While looking at this example, you may also notice the color switch from red to green to red. The color of the VWAP is related to the movement of the Basis line (Orange middle line). When the current basis is > the basis of the previous bar the color of the VWAP is green, and when the current basis is < the basis of the previous bar, the color of the VWAP is red. The color may help you gauge the current directional movement the price is facing within the VWAP.
You may have noticed there are signals within this Indicator. These signals are composed of Green and Red Triangles which represent potential Bullish and Bearish momentum changes. The Momentum changes happen when the Signal Type:
The High/Low or Close (You pick in settings)
Crosses one of the locations within the VWAP.
Bullish Momentum change signals occur when :
Signal Type crosses OVER the Basis
Signal Type crosses OVER the lower level
Bearish Momentum change signals occur when:
Signal Type crosses UNDER the Basis
Signal Type Crosses UNDER the upper level
These signals may represent locations where momentum may occur in the direction of these signals. For these reasons there are also alerts available to be set up for them.
If you refer to the two circles within the example above, you may see that when the close goes above the basis line, how it mat represents bullish momentum. Likewise if it corrects back to the basis and the basis acts as a support, it may continue its bullish momentum back to the upper levels again. However, if you refer to the red circle, you’ll see if the basis fails to act as a support, it may then start to correct all the way to the lower levels, or depending on how expanded the VWAP is, it may just reset its anchor due to such drastic movement.
You also have the ability to disable Machine Learning by setting ‘Machine Learning Type’ to ‘None’. If this is done, it will go off whether you have it set to:
Bullish
Bearish
Neutral
For the type of VWAP you want to see. In this example above we have it set to ‘Bullish’. Non Machine Learning VWAP are still calculated using the same logic of if low < lowest low over length of X and if high > highest high over length of X.
Non Machine Learning VWAP’s change much quicker but may also allow the price to correct from one side to the other without changing VWAP Anchor. They may be useful for breaking up a trend into smaller pieces after momentum may have changed.
Above is an example of how the Non Machine Learning VWAP looks like when in Bearish. As you can see based on if it is Bullish or Bearish is how it favors the trend to be and may likewise dictate when it changes the Anchor.
When set to neutral however, the Anchor may change quite quickly. This results in a still useful VWAP to help dictate possible zones that the price may move within, but they’re also much tighter zones that may not expand the same way.
We will conclude this Tutorial here, hopefully this gives you some insight as to why and how Machine Learning VWAPs may be useful; as well as how to use them.
Settings:
VWAP:
VWAP Type: Type of VWAP. You can favor specific direction changes or let it be Neutral where there is even weight to both. Please note, these do not apply to the Machine Learning VWAP.
Source: VWAP Source. By default VWAP usually uses HLC3; however OHLC4 may help by providing more data.
Lookback Length: The Length of this VWAP when it comes to seeing if the current High > Highest of this length; or if the current Low is < Lowest of this length.
Standard VWAP Multiplier: This multiplier is applied only to the Standard VWMA. This is when 'Machine Learning Type' is set to 'None'.
Machine Learning:
Use Rational Quadratics: Rationalizing our source may be beneficial for usage within ML calculations.
Signal Type: Bullish and Bearish Signals are when the price crosses over/under the basis, as well as the Upper and Lower levels. These may act as indicators to where price movement may occur.
Machine Learning Type: Are we using a Simple ML Average, KNN Mean Average, KNN Exponential Average or None?
KNN Distance Type: We need to check if distance is within the KNN Min/Max distance, which distance checks are we using.
Machine Learning Length: How far back is our Machine Learning going to keep data for.
k-Nearest Neighbour (KNN) Length: How many k-Nearest Neighbours will we account for?
Fast ML Data Length: What is our Fast ML Length? This is used with our Slow Length to create our KNN Distance.
Slow ML Data Length: What is our Slow ML Length? This is used with our Fast Length to create our KNN Distance.
If you have any questions, comments, ideas or concerns please don't hesitate to contact us.
HAPPY TRADING!
VWAP (Any Anchor)Hello Traders,
Introduction:
The Volume Weighted Average Price (VWAP) is a powerful trading indicator used to gauge the average price at which an asset has traded, weighted by volume, over a specific period.
One of the key factors that can significantly impact the effectiveness of VWAP is the concept of "anchoring." In this TradingView indicator script description, we'll explore the concept of anchoring and how it's integrated into a customizable VWAP indicator.
Understanding Anchoring:
Anchoring in VWAP refers to selecting a specific point in time from which the VWAP calculation begins.
This "anchor point" serves as the starting reference for VWAP, and it can substantially impact the indicator's behavior and interpretation.
Anchoring allows traders to adapt VWAP to different trading strategies and scenarios.
Here are some common anchor points used in the script and their significance:
1. Time-Based Anchors: Traders often anchor VWAP to specific times of the trading day, such as the market open (e.g., 9:30 am EST) or close (e.g., 4:00 pm EST).
You could add in the script any time-based anchor you think is relevant for your trading.
2. Event-Based Anchors: Anchoring can also be based on specific market events.
For example, some traders anchor VWAP to events like "3 Consecutive Green Candles" or "Supertrend" direction changes.
Feel free to adapt the script here and add the relevant events-based anchor for your trading.
3. Multi-Timeframe Anchoring: Traders can anchor VWAP on different timeframes, allowing them to analyze price and volume interactions across various horizons.
This flexibility is especially valuable for swing traders adapting to longer-term trends.
Anchor Selection
Traders can choose from various anchor points, including time-based, event-based, and even an "External Connector" for flexibility in adapting VWAP to specific scenarios.
The External connector is the output from another script used in this VWAP script.
Your script may have a condition being “true” whenever a signal is printed - you can use this signal as the anchor for the VWAP.
Conclusion:
Understanding anchoring in VWAP is essential for traders using this indicator effectively.
Choosing and customizing anchor points empowers traders to adapt VWAP to their specific trading styles and strategies.
Whether focused on intraday precision or analyzing longer-term trends, a customizable VWAP indicator with flexible anchoring options can be valuable to your trading toolkit.
Tailor your VWAP to your unique needs and gain deeper insights into market trends and price action.
Made with love
Dave
VWAP Balance ZonesVWAP Balance Zones (VBZ) Is based on 3 concepts.
Many Traders use VWAP to help determine Price Trends.
Trends are typically identified by new Highs or new Lows.
Balanced is found when Supply and Demand are mostly Equal.
VBZ tracks the daily, weekly, and monthly highs and lows; Then plots the average (50%) between the VWAP and the respective extremes.
50% VWAP Zones can be considered significant since they attempt to identify the equilibrium between market participants within the current trend, serving as key reference points to consider for decision making. >While in an uptrend, Buyers may see price falling to the Hi 50% as an attractive value entry for the continuation upwards.
>While ALSO in an uptrend, Sellers may see price falling to the Hi 50% as a change in sentiment with more downwards movement on the way.
Because of these conflicting mindsets, these zones are thought to display areas of balance between buyers and sellers, which can serve as potential decision points throughout the day.
VBZ Draws Zones from the Daily (High/Low/Close) VWAPs and the Day's (High/Low/Close) extremes as seen below.
Technically speaking, an average between vwap and extreme is a single point, to make these into zones I am using multiple sources for vwap and tracking different points of the bar throughout the day (ex. Close VWAP & Daily Highest Close)
Weekly and Monthly are only displaying the Average Price between the VWAP and the (Weekly or Monthly) High/Low.
These hold up as important levels for speculation; however, since most action will be discovered at the daily zones, I am not displaying the zones for the Weekly and Monthly to keep noise to a minimum.
Unique Behaviors:
- Weekly values are hidden on the first day of the week since they are similar to the daily values on the first day of the week.
- Monthly values are hidden in the first week of the month for the same reason.
Quantum VWAP ProThe VWAP indicator is another of our suite of volume indicators and one which was first referred to in 1988 when it appeared in an article entitled “The Total Cost Of Transactions On The NYSE” in the March edition of the Journal Of Finance from that year, which went on to explain its importance, particularly from an institutional perspective, which underpins its significance in appreciating the power and importance of this indicator.
In many ways, it is akin to the volume price analysis methodology itself, as we are merely attempting to follow the footprints in the sand left by their passage and described by volume. The same is true here, but in this case, we are following the institutions in much the same way.
Originally, the VWAP indicator was developed as a benchmark to measure whether an institutional customer received a fair execution of their order by the broker buying and selling on their behalf. The difference between the reported price and the VWAP gave the customer a benchmark against which to judge whether they had received a fair price or not. A portfolio manager for example, wants to know how the price they paid compared to the average price of the stock during the time it took to fill the order. If an order is filled at a worse price than the VWAP, it raises questions as to the ability of the broker. If the broker purchased a million shares at $40.50 and the VWAP during this time was at $40.70, the customer is likely to be happy since they paid 20 cents less than ‘fair value’. Equally, if the stock were purchased above, at, say $40.90 per share, the customer would consider this a poor trade, paying well above the fair value price at the VWAP.
The simplicity of this easy-to-understand benchmark, which creates this fair value price concept, has led to its wholehearted adoption amongst the institutions, and moreover, why algorithmic VWAP orders now dominate institutional market activity. A huge percentage of institutional orders are executed as VWAP orders, which raises two key questions. First of all, why, and second, how can we benefit from using the indicator?
If we start with the why, according to reports from the leading market makers, almost 40% of orders are now executed on this basis as they attempt to obtain a buy or sell price close to or better than the VWAP during the time it takes to complete the buy or sell order. These orders, therefore, help to hugely reinforce the importance of the VWAP since it is the guiding principle on which these orders are based. Even Warren Buffet uses VWAP, as evidenced when he sold his entire position in Southwest Airlines over two days, holding 2.3 million shares.
This highlights the key issues for any large institutional investor involving the price. If executed in a single order, an order to buy a large block of shares would almost certainly swamp the market, raising the price exponentially and, in addition, overwhelm the average volume traded in the day.
It is this issue of putting the price up against their own buying or conversely seeing the price fall as a result of their own selling that leads to the parent and child order scenario where significant block orders are broken into a multitude of smaller orders, which are duly executed over days, weeks or months. It is this aspect of institutional order execution that makes the VWAP such a potent indicator.
However, at Quantum Trading, we don’t just build a single indicator and leave it at that! We always take them to another level, and here we have done the same, bundling together a total of five indicators into one amazing value package so you can select your favorite from those on offer. The reason for this is we recognize the different ways the volume-weighted average price is used, which is why we offer a total of FIVE variants to choose from, and these are as follows:
VWAP – Volume Weighted Average Price
MVWAP – Moving Volume Weighted Average Price
AVWAP – Anchored Volume Weighted Average Price
TWAP – Time Weighted Average Price
Interday Volume Weighted Average Price
All five variants include the option to display upper and lower bands that act as envelopes above and below the VWAP based on standard deviation, which you can adjust and set yourself. These price envelopes become essential dynamic support and resistance levels, which can help predict the extremes of price action as it oscillates around the VWAP from the fastest to the slowest timeframes and everything in between.
All five indicators are packaged into one powerful indicator, which we have named the Quantum VWAP Pro indicator for obvious reasons, and as you would expect, it works in all markets and instruments, whether stocks, futures, ETFs, forex or cryptocurrencies.
Finally, as with all our indicators, we recommend you use it in multiple timeframes.
ZWAP (ZigZag Anchored VWAP) [Kioseff Trading]Hello!
Quick script showcasing the new polyline function for Pine Script!
Features
Up to 100 high/low pivot points auto anchored VWAP
Visible range auto anchored VWAP
Curved ZigZag (Adjustable!)
With the new polyline function, auto-anchored VWAP at specific price points is more viable.
When using line.new() only 500 lines can exist on the chart concurrently and, since VWAP is calculated on every update, a "proper" VWAP drawn using line.new() can extend 500 bars at most, to which no additional VWAP lines can be drawn after.
Of course, when using the plot() function a VWAP line will draw on every bar; however, this method isn't highly compatible with auto-anchoring VWAP lines.
However!
A polyline, from beginning to end irrespective of the number of coordinates used, constitutes 1 polyline; 100 can exist simultaneously with 10,000 xy coordinates per line.
The image above shows an attempt to draw the same auto-anchored VWAP lines using the line.new() function. Not an ideal outcome!
The image above shows the same attempt using the polyline.new() function!
Very nice (:
The image above shows the indicator auto anchoring to zig zag turning points.
Subsequent to a new anchoring, VWAP is calculated for the following bars - up to the current bar.
Thank you for checking this out; if you have any ideas to spice it up feel free to comment!
Crypto Spot/Futures Dominance Indicator with AlertsFutures/Spot Dominance Indicator:
Overview:
The futures/spot dominance indicator is a versatile tool used by traders and analysts to assess the relative strength or dominance of the futures market in relation to the spot (or cash) market for a specific asset. It offers insights into market sentiment, potential arbitrage opportunities, and risk management while incorporating the VWAP indicator for added context.
How It Works:
This indicator automatically detects and adapts to the futures symbol applied to the chart, simplifying the setup for traders. However, it still necessitates manual input of the corresponding spot pair to ensure accuracy.
Automatic Futures Symbol Detection: The indicator starts by automatically detecting the futures symbol on the trading chart, eliminating the need for manual configuration. This ensures that the indicator is applied to the correct futures contract.
Manual Spot Pair Entry: To provide a reliable reference point for the comparison, traders must manually input the corresponding spot symbol via the indicator's inputs. For instance, if the indicator detects the BTCUSDT.P futures symbol, traders would manually enter the BTCUSDT spot symbol.
Gathering Data: The indicator collects historical price data for both the detected futures contract and the manually specified spot symbol. This data includes open, high, low, and close prices, as well as trading volume.
VWAP Calculation: To gain a deeper understanding of price trends and market dynamics, the indicator calculates the VWAP (Volume Weighted Average Price) for both the futures and spot markets. The VWAP places more weight on prices with higher trading volume, offering a weighted average that reflects market consensus.
Premium/Discount Calculation: By subtracting the VWAP of the spot market from the VWAP of the futures market, the indicator quantifies the premium or discount of the futures price concerning the spot price. A positive value indicates a premium, while a negative value suggests a discount.
Plotting: The premium/discount value is displayed as a line on the chart, often alongside moving averages or other smoothing techniques for improved trend analysis.
Alerts: In addition to its analysis capabilities, this indicator now includes alerts to enhance your trading experience. It alerts you in the following scenarios:
Premium Above Average: Notifies you when the premium crosses above the average line.
Premium Below Average: Alerts you when the premium crosses below the average line.
Premium Above Zero: Provides an alert when the premium crosses above the zero line.
Premium Below Zero: Generates an alert when the premium crosses below the zero line.
Benefits of the Futures/Spot Dominance Indicator:
Sentiment Analysis: Traders use the indicator to assess market sentiment. A futures premium might signify bullish sentiment, while a discount could indicate bearish sentiment.
Arbitrage Opportunities: Identifying price discrepancies between futures and spot markets can help traders spot arbitrage opportunities, where they can profit from price differentials.
Risk Management: The indicator assists in evaluating risks associated with futures positions, helping traders manage their exposure effectively.
Trend Confirmation: When used in conjunction with other technical indicators, futures/spot dominance, along with VWAP, can provide additional confirmation of price trends.
Hedging: Investors and corporations use this tool to gauge the effectiveness of hedging strategies based on futures contracts.
Speculative Trading: Traders and investors use the indicator to inform speculative positions, aligning their trades with perceived market strength or weakness.
Insightful Analysis: Futures/spot dominance analysis, enriched by VWAP data, offers insights into market behavior during specific events or changes in economic conditions.
In summary, the futures/spot dominance indicator, with its integration of VWAP and automatic futures symbol detection, provides traders and investors with a comprehensive tool to assess market dynamics. It aids in sentiment analysis, risk management, and trend confirmation while offering potential arbitrage opportunities. The newly added alerts enhance the indicator's functionality, providing timely notifications of key market events. However, it relies on manual input of the corresponding spot pair to ensure precise comparisons between futures and spot markets. It should be used alongside other analysis techniques for a well-rounded view of the market.
VWAP with CharacterizationThis indicator is a visual representation of the VWAP (Volume Weighted Average Price), it calculates the weighted average price based on trading volume. Essentially, it provides a measure of the average price at which an asset has traded during a given period, but with a particular focus on trading volume. In our case, the indicator calculates the VWAP for the current trading symbol, using a predefined simple moving average (SMA) with a period of 14. This volume-weighted moving average offers a clearer view of the behavior of the VWAP and, of consequence of market dynamics.
One of the distinctive features of this indicator is its ability to provide a more "linear" representation of the data. This means that the data is "smoothed" to remove noise, allowing you to more easily identify the direction of the market trend. This smoother representation is especially useful because the financial market can be subject to significant fluctuations and volatility, and this indicator can help get a more stable view of the trend.
The indicator also offers a visualization of the market trend in a very intuitive way. Using an evaluation of the highs and lows of the last 10 days, determine whether the market is in an uptrend, downtrend, or no trend at all. To make this evaluation even clearer and more immediate, the indicator line is colored dynamically. When the trend is bullish, the line is blue, while in case of a bearish trend, it takes on a distinctive color, such as pink. If the trend is not defined, the line will be colored differently, for example light yellow. This coloration gives traders an immediate visual indication of the prevailing trend, allowing them to make more informed decisions regarding trading operations.
One potential strategy involves watching candles when they cross the VWAP line strongly. If, for example, a candlestick breaks above the VWAP line, we may look for retest areas near key support levels to gauge a potential long entry. In other words, we would consider that the price may have the potential to rise further after breaking above the VWAP line, and we would look to enter a long position to take advantage of this opportunity.
On the other hand, if a candlestick crosses below the VWAP line, we might consider looking for retest areas near the VWAP line itself, which now serves as potential resistance. This could indicate a possible short entry opportunity, as the price may struggle to break above the resistance represented by the VWAP line after breaking it down. In this case, we would look to take advantage of the expected continuation of the downtrend.
In both cases, the idea is to exploit significant movements across the VWAP line as signals of potential reversal or continuation of the trend. This strategy can help identify key entry points based on price behavior relative to the VWAP line.
Kviatek - Multi Hour VWAPThis is an experimental script, that plots 24 VWAPs, each starting at a new hour and lasting for 24hours.
After using session anchored VWAPs i kept wondering if the price reacts to VWAPs that begin at periods lower than sessions.
Color of each VWAP changes upon crossovers of the following VWAP, giving us an understanding of trends and whether we're trading with the trend or against it.
By the nature of the script I recommend using it on low timeframes, 5 and 15-minute ones ideally.
Kviatek - Multi Day VWAPThis indicator plots VWAPs anchored to each day of the week.
VWAPs are considered "fair price" for both sellers and buyers and it's often times where the liquidity is found.
From my trading I noticed how often times price likes to come back to the daily VWAP from the previous week, especially at the beginning and end of each week.
For example, if we enter a long on Friday, last Friday's VWAP tends to act as a target for the price.
Another use for it is to get an understanding of how the trend develops throughout the week.
If the following day's VWAP is above the previous day's VWAP - we have a trend continuation.
VWAP Divergence | Flux ChartsThe VWAP Divergence indicator aims to find divergences between price action and the VWAP indicator. It uses filters to filter out many of the false divergences and alert high quality, accurate signals.
Red dots above the candle represent bearish divergences, while green dots below the candle represent bullish divergences.
The main filter for divergences focuses on ATR and the price movement in the past candles up to the lookback period. Divergences are determined when a price movement over the lookback period is sharp enough to be greater/less than the ATR multiplier multiplied by the ATR.
Settings
Under "Divergence Settings", both the lookback period and ATR multiplier can be adjusted.
Due to the nature of the calculations, the ATR multiplier and the lookback period should be set lower on higher time frames. As price movements become more averaged, for example on the 15 minute chart, sharp price movements happen less frequently and are often contained in fewer candles as they happen on lower time frames. Less volatile stocks such as KO, CL, or BAC should also use lower ATR multipliers and lower lookback periods.
Under "Visual Settings", you can change the color of the VWAP line, show alternating VWAP colors, adjust divergence signal size, and show the VWAP line.
TTP VWAP BandThis indicator offers 20 VWAP bands and on-chart statistic data about the bands.
Features
- Longs and shorts
- Cherry-pick up to 5 bands for backtesting
- Plots 20 bands
- Step scale to increase deviation percentage on each band
- Period and timeframe selectors
- Band crosses: how many times a band was crossed (also percentage)
- Band bounces: how many times each band was pinched and bounced back (also percentage)
How to use:
1) Set the chart to 15 or 5 minute timeframe for higher backtesting accuracy
2) Select the first band deviation % (MIN Long VWAP % and MIN Short VWAP %), use a small number like 0.3 or 1.0 since the rest of the 20 bands will increase that amount later.
3) Select a step scale or leave it in 1 if you prefer same distance between all bands. Notice that if you use a value below 1 the bands will get closer to each other.
4) Observe the statistics and pay attention to how many times each of the bands are being crossed in percentage. This will later help you make decisions on when to enter and where to potentially put an SL.
Connect with your preferred backtester:
You can backtest a single or multiple bands at once. For example you could use the 7th band to enter a base order and later use crosses of the 4th band to enter safety orders. Any combination is possible!
Let's assume you decide that you will be backtesting only 1 band at the time as your single entry condition for your backtester.
Let's also assume that you want to use the 2nd band for long entries then do follow these steps:
- Set "Band 1 backtesting" to 2 so that it prints 1 every time the price crosses below the 2nd band.
- Leave the other Band backtesting band settings with a 0 so they stay disabled
- Add your backtester to the same chart and select "band 1 long signal"
- This signal will contain 1 every time your conditions are met
Colored VWAP and BarcolorThis indicator plots the Volume Weighted Average Price (VWAP) as well as changes the bar color if the current price is above or below VWAP, for quick visual reference.
Background Information
Straight from TradingView, "Volume Weighted Average Price (VWAP) is a technical analysis tool used to measure the average price weighted by volume. VWAP is typically used with intraday charts as a way to determine the general direction of intraday prices. It's similar to a moving average in that when price is above VWAP, prices are rising and when price is below VWAP, prices are falling. VWAP is primarily used by technical analysts to identify market trend."
About the Indicator
This indicator changes the VWAP line color and bar color based on the current price.
Bar Color
Bullish Up Candle Color = Current price is above VWAP and the close of the candle was greater than the open.
Bullish Down Candle Color = Current price is above VWAP and the close of the candle was less than the open.
Bearish Up Candle Color = Current price is below VWAP and the close of the candle was greater than the open.
Bearish Down Candle Color = Current price is below VWAP and the close of the candle was less than the open.
Intraday Direction Finder For Indices (Based On VWAP) Happy Independence Day..!!
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This indicator is based on the concept shared by "learntotrade365" to Find Intraday Direction for Index.
To decide the direction of Index we check whether the constituent Stocks are trading above VWAP or below VWAP.
Lets Consider Banknifty Example.
Banknifty Constituents are:
HDFC Bank
ICICI Bank
KOTAK Bank
SBI
AXIS Bank
IndusInd Bank
Based on concept, where above stocks are trading decides the direction as follows
Ratio Concept (Color)
6:0 Super Bullish (Lime)
5:1 Bullish(Green)
4:2 Mild Bullish (Aqua)
3:3 Sideways(Blue)
2:4 Mild Bearish ( Orange)
1:5 Bearish (Fuchsia)
0:6 Super Bearish (Red)
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Features :-
1) Screener
In this Screener, we can clearly see which stock is trading above VWAP
& which is trading below VWAP along with ratio.
2) Chart Candle Colors
One can able to project candle colors according to Ratio colors.
3)Chart Background Color
One can set background color of chart if he is required.
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Same this can be used with other indices also like Nifty, Finnifty etc.
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Thanks For Reading Till here...!!
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Kindly share your feedback or any suggestions.
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ODSR - Open Driven Support and Resistance LevelsODSR is a support and resistance levels generator indicator which uses Open of the Day, Week or Month (basis time frame selection by user) to calculate support and resistance levels and plot it on chart.
Background:
I have been using various indicators which could generate support and resistance levels using different data points available on chart. After analyzing multiple indicators I felt there is a need of an indicator which uses Open of the day, week or month as base data and then do further calculations and generate support and resistance levels.
Logic
This indicator takes open of day, week or month candle and then compare how far was the high and low from open. It then calculate the range and add it for analysis, it does same for all the candles declared in look back period of the indicator. Once it have all the data it calculates average difference of high and low from open price. It then compare how many times that average range has been exceeded by high or low made on specific day. If high or low has exceeded the average range it then calculate how by how many point new high or low has exceeded the average range. It then use that difference to predict next level of Support and Resistance. It then check if high or low has still exceeded the support or resistance range indicator predicted using points difference it found from when price exceeded initial average range. Indicator repeat the process till 7 levels of support and resistance has been generated by indicator.
Usage
As indicator use Open price data to generate support and resistance levels therefore once it has open price of the Day, Week or Month candle it will plot the levels on charts. Open price is plotted in thin black dot line, anything above it would be considered as resistance levels. Anything below dotted line would be considered as support levels. The far the level from open less possibility it will be tested by the price. Therefore if price breaks one level it may try to test next level or can return back to Open price as well.
Along with support and resistance indicator also calculate VWAP moving average which smoothen the normal VWAP line and allow use to identify long term trend on chart. Points table display the average difference between levels price has exceeded in past.
Please do share comments, feedback or questions if you have any. If you liked the indictor please do share it with others too.
Temporary imbalancesThis indicator is designed to identify imbalances in order flow and market liquidity, It highlights candles with significant imbalances and draws reference lines
The indicator calculates imbalance based on changes in closing prices and volume. It uses the standard deviation to determine the significant imbalance threshold. Candles with bullish imbalances are highlighted in green, while candles with bearish imbalances are highlighted in red.
Furthermore, the indicator includes features of latency arbitrage and liquidity analysis. Latency arbitrage looks for price differences between the anchored VWAP and bid/ask quotes, targeting trading opportunities based on these differences. The liquidity analysis verifies the liquidity imbalance and calculates the VWAP anchored on this value in total using 4 VWAP.
This indicator can be adjusted according to the preferences and characteristics of the specific asset or market. It provides clear visual information and can be used as a complementary tool for technical analysis in trading strategies.
Interesting Segment Length 20,50,80,200
and Interesting lookback period 20,50,80,200
Interesting imbalance threshold 1.5, 2.4, 3.3 ,4.2
Este indicador é projetado para identificar desequilíbrios no fluxo de ordens e na liquidez do mercado, Ele destaca velas com desequilíbrios significativos e traça linhas de referência
O indicador calcula o desequilíbrio com base nas mudanças nos preços de fechamento e no volume. Ele usa o desvio padrão para determinar o limiar de desequilíbrio significativo. As velas com desequilíbrios de alta são destacadas em verde, enquanto as velas com desequilíbrios de baixa são destacadas em vermelho.
Além disso, o indicador inclui recursos de arbitragem de latência e análise de liquidez. A arbitragem de latência procura diferenças de preços entre a VWAP ancorada e as cotações de compra/venda, visando oportunidades de negociação com base nessas diferenças. A análise de liquidez verifica o desequilíbrio de liquidez e calcula a VWAP ancorada nesse valor ao total utiliza 4 VWAP.
Este indicador pode ser ajustado de acordo com as preferências e características do ativo ou mercado específico. Ele fornece informações visuais claras e pode ser usado como uma ferramenta complementar para análise técnica em estratégias de negociação.
Comprimento do Segmento interessante para usa 20,50,80,200
e Período de lookback interessante para usa 20,50,80,200
Limiar de desequilíbrio interessante para usa 1.5 ,2.4, 3.3 ,4.2
Fixed Range Anchored VWAPFixed Range Anchored VWAP
Description:
This indicator expands upon the popular Anchored VWAP concept by introducing user-defined start and end dates, allowing traders to select and analyze specific zones of interest. The VWAP is a widely recognized benchmark utilized by traders to assess the average price paid for a security, factoring in both volume and price. By incorporating volume data, the VWAP offers a comprehensive view of market sentiment and provides significant insights into intraday price action.
The Fixed Range Anchored VWAP takes the VWAP concept a step further by enabling traders to define a custom start and end date. This feature allows them to zoom in on specific periods of interest, such as earnings announcements, major news events, or significant price swings. By narrowing the focus to a specific time range, traders can gain a more detailed understanding of how the VWAP interacts with price movements within that specific zone.
How to Use:
1. Set the Start and End Dates: Define the desired start and end dates for the analysis period.
2. Analyze Price Movements: Observe how the VWAP interacts with price action within the defined range.
Bank Nifty ScalpingThis indicator is designed for scalping purposes.
Users have the option to input the desired source and enable or disable the following indicators:
Multiple EMA (Exponential moving average)
Simultaneously displays multiple moving averages to quickly identify shifts in momentum and obtain confirmation from slower-moving averages.
By default, the EMA display settings are configured to show the 20-day EMA and the 200-day EMA. However, users have the flexibility to modify the display settings according to their preferences. This means that users can customize the indicator to show the EMA values of their choice, such as EMA 50 and EMA 100.
VWAP ( Volume weighted average price )
Default value is set to ‘hl2’
A bullish trend is indicated when the price is above the Volume Weighted Average Price (VWAP), while a bearish trend is indicated when the price is below the VWAP.
VWMA ( Volume weighted moving average )
In the VWMA (Volume Weighted Moving Average) indicator, a default value of 20 is used. If the price is higher than the VWMA, it typically indicates a bullish trend. Conversely, if the price is lower than the VWMA, it suggests a bearish trend. The VWMA takes into account both price and volume, providing a weighted average that can help identify shifts in market sentiment.
Multiple SuperTrends
Default value is 10 and 2 / 10 and 3
A bullish trend is identified when the price is above the SuperTrend indicator, whereas a bearish trend is observed when the price is below the SuperTrend indicator.
Camarilla Pivot Points (Level 3 and 4 only)
Levels 3 and 4 serve as crucial support and resistance levels, acting as the final line of defense against strong trends. These levels are expected to generate reversals, where price often changes direction.
CPR ( Central Pivot Points)
The Daily Central Pivot Point Indicator is a popular tool used in technical analysis. It calculates several levels based on the previous day's high, low, and closing prices.
Strong Volume
The user has the ability to set the average volume for Nifty and BankNifty indices to calculate strong volume.
Elder Impulse System
The Impulse System, developed by Alexander Elder and discussed in his book "New Trading for a Living," is a censorship trading system designed to determine whether a trade should be allowed or prohibited. Additionally, it can be used to identify when a trend is starting to weaken. The Impulse System relies on the following factors:
1. Slope of a Fast Exponential Moving Average (EMA): The fast EMA's slope reflects the price's inertia or momentum.
2. Slope of the Moving Average Convergence Divergence (MACD): The MACD's slope indicates the strength or power of the price movement.
Based on these factors, the Impulse System categorizes candles or price bars into three colors:
* Green Candle: When both the fast EMA and MACD are rising, indicating upward momentum.
* Red Candle: When both the fast EMA and MACD are declining, suggesting downward momentum.
* Blue Candle: In all other cases where the conditions for green or red candles are not met, representing a neutral or uncertain market condition.
By applying the Impulse System, traders can gain insights into the market trend, its strength, and potential shifts in momentum, helping them make informed trading decisions.
Happy Trading
VWAP angle TrendThe VWAP Angle Trend is an indicator built with the aim of providing valuable insights into the reversal points of the #VWAP using Angle
This is achieved by calculating the angle between the current VWAP and its previous value over a customizable lookback period and normalizing it with ATR
By analyzing the angle, we can gain an understanding of the strength and direction of the VWAP, which can help them identify potential trend reversals or continuations.
After observing the market over a lengthy period, I have come to realize that as the angle increases above 65 or decreases under -65 , it confirms a higher likelihood of a trend reversal.
the indicator highlights these zones where a trend reversal is more likely to occur.
The indicator can help you to assess the strength and direction of VWAP, enabling you to make more informed trading decisions.
By identifying periods of strong momentum or potential exhaustion, you can seek opportunities for entering or exiting positions, and potentially capitalize on trend movements in the market.
