OPEN-SOURCE SCRIPT
VWMA with Highlighted Zones
This script plots a Volume-Weighted Moving Average (VWMA) on a price chart and highlights buy and sell zones based on price positioning relative to the VWMA. It first calculates the VWMA using a user-defined length and source price. If the closing price is below the VWMA, the script marks the area between the low and the VWMA as a buy zone, coloring it red. If the closing price is above the VWMA, it marks the area between the high and the VWMA as a sell zone, coloring it green. These highlighted regions help traders visually identify potential support and resistance areas based on volume-weighted price movements.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publications is governed by House rules. You can favorite it to use it on a chart.
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