GW-VWAP

The GW-VWAP indicator provides a multi-layered volume-weighted average price (VWAP) system designed to identify market trends and potential reversal points through a unique triple-VWAP channel.

Usage

The tool is used to gauge market sentiment and identify support or resistance levels based on volume-weighted price action.

• Trend Identification: The central "gummy worm" structure consists of two VWAPs (typically based on High and Low prices). When the price holds above this channel, it signifies a bullish trend, whereas price action below the channel indicates a bearish trend.
• Reversal & Target Areas: The outer standard deviation bands serve as dynamic levels for scaling out of positions or identifying potential exhaustion points where the price may reverse.
• Bar Coloring: The indicator automatically colors price bars based on the current VWAP trend, allowing for quick visual confirmation of market momentum.

Details

The GW-VWAP utilizes three distinct VWAP calculations simultaneously. The core channel is formed by calculating VWAP on two separate sources (defaulting to High and Low), creating a band that tracks the price range. A third VWAP (defaulting to HL2) acts as the central anchor.

The calculation uses an "Anchor Period" to reset the cumulative volume and price data at specific intervals, such as the start of a session, week, or even corporate events like earnings and dividends. This multi-source approach provides a more comprehensive view of volume-weighted value than a single-line VWAP.

Settings

VWAP Settings

• Hide VWAP on 1D or Above: When enabled, removes the indicator from higher timeframe charts to maintain clarity.
• Anchor Period: Sets the timeframe or event (Session, Week, Month, Earnings, etc.) at which the VWAP calculation resets.
• Source 1, 2, & 3: Determines the price input for each of the three VWAP lines (Defaults: High, Low, and HL2).
• Offset: Shifts the indicator plots forward or backward in time.

Standard Deviation Bands Settings

• Calculate Bands: Toggles the visibility and calculation of the outer standard deviation bands.
• Source 1 & 2 Bands Multiplier: Controls the width of the bands derived from the High and Low VWAPs.
• Source 3 Bands Multiplier: Controls the width of the bands derived from the central HL2 VWAP.

FAQ

How do I access the GW-VWAP?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Can I change the reset period of the VWAP?

Yes, use the "Anchor Period" setting to change how often the calculation resets, whether it be daily, weekly, or based on specific events like earnings.

How are the colors determined?

The colors are determined by the price's position relative to the High and Low VWAP lines. If the price is trending above the high-source VWAP, the trend is considered bullish; if below the low-source VWAP, it is bearish.