Multiple VWAP

The Multiple VWAP indicator provides a comprehensive view of volume-weighted average prices across three distinct time horizons, helping traders identify intraday value areas and institutional trends.

Usage

The indicator can be used to gauge the relationship between price and volume-weighted averages over different anchor periods. Traders often look for confluences where multiple VWAP lines converge or act as support and resistance.

• D-VWAP (Daily): Useful for finding the intraday trend and mean reversion points.
• W-VWAP (Weekly): Helps identify the weekly momentum and serves as a significant level for swing traders.
• M-VWAP (Monthly): Provides a high-level view of monthly institutional positioning.

Common strategies include trading price crossovers of these levels or using them as dynamic profit targets and stop-loss zones.

Details

The script calculates VWAP by accumulating the product of price (source) and volume, then dividing by the total accumulated volume for the specific period. The anchor points (Daily, Weekly, Monthly) are determined by monitoring changes in the session time, ensuring that the cumulative calculation resets precisely at the start of each new day, week, or month.

Settings

• Source: Determines the price input used for the calculation. The default is HLC3 (High, Low, Close divided by 3), which is the standard for VWAP.

FAQ

How can I use Multiple VWAP for trend confirmation?

If the price is trading above the Daily, Weekly, and Monthly VWAP lines, it suggests a strong bullish trend across all time horizons. Conversely, trading below all three indicates a bearish environment.

Does this indicator work on higher timeframes?

The script is designed for intraday use. The plot logic specifically checks for intraday timeframes to ensure the anchor periods are meaningful relative to the chart resolution.

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.