EDS Key & Vwap

The EDS Key & Vwap indicator provides a dynamic support and resistance framework by anchoring key price levels and volume-weighted average prices to corporate events such as earnings, dividends, or splits. This tool helps stock traders identify significant institutional interest zones and volatility bands following major fundamental data releases.

Usage

The indicator can be used to visualize how price reacts to historical event-driven levels.

• Key Level S/R: This level acts as a horizontal anchor based on the selected calculation mode (Earnings, Dividends, or Splits). It helps identify long-term supply and demand zones that originate from high-impact fundamental events.
• Anchored VWAP: The VWAP resets automatically at every event release. This provides a running average of the price weighted by volume starting from the event date, offering a clear view of the "average price" since the news broke.
• Volatility Bands: Traders can use the Standard Deviation bands to identify overextended price action. These bands expand and contract based on the variance of the price relative to the Anchored VWAP.

Details

The script utilizes the ESD_FACTSET data source via request.security to pull historical event dates and data. The Key Level is calculated based on the price action around the time of the event release, typically averaging the high and low prices of the surrounding bars. The Anchored VWAP and its standard deviation bands are calculated cumulatively from the bar of the last detected event.

Settings

Key Level

• Key Level Calculation Mode: Select the fundamental event to anchor to (EARNINGS, DIVIDENDS, or SPLITS).
• Show Labels: Toggles the visibility of data labels containing estimated vs. confirmed values and surprises.
• Show Key Level Circles & Fill: Enables the visual background fill and price circles for the key support/resistance level.

Vwap

• Vwap StDev Bands: Toggles the visibility of standard deviation bands.
• Number of Vwap Deviation Levels: Adjusts how many bands are displayed (up to 8).
• StDev Start: Sets the multiplier for the first standard deviation band.
• StDev Step: Determines the incremental distance between each subsequent band.

FAQ

How do I access the EDS Key & Vwap indicator?

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

Can I use this on Crypto or Forex?

No, the script is designed specifically for stock trading as it relies on corporate event data (Earnings, Splits, and Dividends) which are specific to equities.

What do the labels indicate?

The labels display event-specific data; for Earnings, they show the Estimate, Confirmed value, and the Surprise percentage. For Dividends and Splits, they show the respective payout or ratio details.