VWAP/ MVWAP

The VWAP/ MVWAP indicator combines Volume Weighted Average Price and its moving average equivalent alongside daily and weekly pivot points to provide a comprehensive intraday trading framework.

Usage

The Usage section focuses on identifying trend direction and potential reversal zones using the relationship between price, VWAP, and MVWAP. Traders often look for the following scenarios:

• Trend Identification: When the VWAP is above the MVWAP, it suggests a bullish intraday bias. Conversely, when VWAP is below MVWAP, it suggests a bearish bias.
• Avoiding Whipsaws: By using the MVWAP (Moving Volume Weighted Average Price) as a smoothing filter, traders can avoid premature entries during volatile sideways price action.
• Support & Resistance: The integrated Daily and Weekly Pivot points (including R1-R3 and S1-S3) serve as key levels where price may stall or reverse. The script also includes the Central Pivot Range (BC and TC) to help identify the strength of the market structure.

Details

The script calculates the standard VWAP and then applies an Exponential Moving Average (EMA) to that value to derive the MVWAP. The pivot points are calculated using classic formulas based on the previous period's high, low, and close prices. These levels are fetched using higher timeframe security calls (Daily and Weekly) to ensure they remain consistent across lower timeframe intraday charts.

Settings

• EMA Length: Determines the period used to calculate the MVWAP from the VWAP line.
• Show Daily Pivots?: Toggles the visibility of the daily pivot levels (P, R1, S1, R2, S2).
• Show Weekly Pivots?: Toggles the visibility of the weekly pivot levels.
• Show R3 & S3?: Adds the third level of resistance and support to the chart.
• Show Pivot Range?: Displays the Top Central (TC) and Bottom Central (BC) levels of the pivot range.

FAQ

How do I use the VWAP/ MVWAP crossover?

A crossover of the VWAP above the MVWAP can indicate strengthening bullish momentum, while a cross under suggests bearish momentum. These should be used in conjunction with the plotted pivot levels.

Can I set alerts for price crossing these levels?

Yes, the script includes alert conditions for VWAP/MVWAP crossovers as well as price crossing the VWAP line.

How can I access this tool?

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