PROTECTED SOURCE SCRIPT
VWAP ±2σ Entry Signals (volume Weighted)
This indicator builds a session based VWAP and plots the upper and lower 2nd standard deviation bands around it. These bands act as dynamic volatility edges for the session. When price reaches these outer bands, it often represents an extreme stretch away from fair value a place where mean reversion or exhaustion can occur.
The indicator generates trade signals only when price approaches the band from the correct direction, which filters out a lot of noise and reduces false touches.
How It Works
VWAP is calculated from the start of each session.
Standard deviation is computed using volume weighted prices, so the bands expand and contract with real market activity.
The upper and lower 2σ bands form natural "overextended" zones around VWAP.
Most VWAP band strategies fire signals every time price touches a band which produces a lot of junk signals.
This version avoids that by requiring direction based touches, meaning:
If price is already above the band, no sell signal appears.
If price is already below the band, no buy signal appears.
The indicator generates trade signals only when price approaches the band from the correct direction, which filters out a lot of noise and reduces false touches.
How It Works
VWAP is calculated from the start of each session.
Standard deviation is computed using volume weighted prices, so the bands expand and contract with real market activity.
The upper and lower 2σ bands form natural "overextended" zones around VWAP.
Most VWAP band strategies fire signals every time price touches a band which produces a lot of junk signals.
This version avoids that by requiring direction based touches, meaning:
If price is already above the band, no sell signal appears.
If price is already below the band, no buy signal appears.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
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.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
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.