UAlgo

Vwap Z-Score with Signals [UAlgo]

The "VWAP Z-Score with Signals " is a technical analysis tool designed to help traders identify potential buy and sell signals based on the Volume Weighted Average Price (VWAP) and its Z-Score. This indicator calculates the VWAP Z-Score to show how far the current price deviates from the VWAP in terms of standard deviations. It highlights overbought and oversold conditions with visual signals, aiding in the identification of potential market reversals. The tool is customizable, allowing users to adjust parameters for their specific trading needs.

🔶 Features

VWAP Z-Score Calculation: Measures the deviation of the current price from the VWAP using standard deviations.

Customizable Parameters: Allows users to set the length of the VWAP Z-Score calculation and define thresholds for overbought and oversold levels.

Reversal Signals: Provides visual signals when the Z-Score crosses the specified thresholds, indicating potential buy or sell opportunities.

🔶 Usage

Extreme Z-Score values (both positive and negative) highlight significant deviations from the VWAP, useful for identifying potential reversal points.

The indicator provides visual signals when the Z-Score crosses predefined thresholds:

A buy signal (🔼) appears when the Z-Score crosses above the lower threshold, suggesting the price may be oversold and a potential upward reversal.

A sell signal (🔽) appears when the Z-Score crosses below the upper threshold, suggesting the price may be overbought and a potential downward reversal.


These signals can help you identify potential entry and exit points in your trading strategy.

🔶 Disclaimer

The "VWAP Z-Score with Signals " indicator is designed for educational purposes and to assist traders in their technical analysis. It does not guarantee profitable trades and should not be considered as financial advice.

Users should conduct their own research and use this indicator in conjunction with other tools and strategies.

Trading involves significant risk, and it is possible to lose more than your initial investment.

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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 a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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