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OPEN-SOURCE SCRIPT

Order-Flow Proxy (VWAP Deviation Zones)

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This indicator visualizes price deviation from the session VWAP to identify institutional bias, over-extension, and potential reversal zones. It highlights when price strays too far from fair value due to order-flow imbalance.


Concept
  1. VWAP as Fair Value: Institutional benchmark for premium/discount zones.
  2. Positive Deviation (Top Zone): Price well above VWAP → potential overbought/short.
  3. Negative Deviation (Bottom Zone): Price well below VWAP → potential oversold/long.
  4. Z-Score Filter (optional): Shows only statistically extreme deviations.
  5. Colors: 🔴 top (above VWAP), 🟢 bottom (below VWAP).


Usage Tips
  • Best on intraday (1m–1h) for mean-reversion/fade setups.
  • Combine with volume climax, liquidity sweeps, or displacement for confirmation.
  • Use alerts to catch VWAP over-extensions in real time.


Technical Notes
  • Deviation = (Price − VWAP) ÷ VWAP.
  • Z-score uses rolling SMA and standard deviation on deviation series.
  • Works with TradingView session VWAP on liquid markets.


License
Apache 2.0 — © 2025 tkarolak — Free to use with attribution; no endorsement implied.

Open-source script

In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.

tkarolak
Also on:
educationalliquidityorder-flowoverextensionsmart-moneyVolatilityvwaps

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.
educationalliquidityorder-flowoverextensionsmart-moneyVolatilityvwaps

Open-source script

In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.

tkarolak
Also on:

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.