D/W/M VWAPs

The D/W/M VWAPs indicator provides a comprehensive multi-timeframe view of Volume Weighted Average Prices (VWAP) by plotting daily, weekly, and monthly levels directly on the chart. This tool helps traders identify key institutional value areas and liquidity zones across different time horizons simultaneously.

Usage

The Usage section focuses on how these multi-timeframe levels act as dynamic support and resistance. Traders often look for price reactions at the Daily, Weekly, or Monthly VWAP to determine the trend bias or to find high-probability entry points.

• Trend Identification: If the price is trading above the Daily, Weekly, and Monthly VWAP, the asset is considered to be in a strong bullish trend.
• Mean Reversion: The inclusion of Standard Deviation bands (St Dev 1 and 2) allows for overbought and oversold analysis. When price reaches the outer bands, it may indicate an exhaustive move prone to a retracement back toward the VWAP mean.
• Timeframe Filtering: Using the "Hide in Own Time Frame" setting, you can keep your charts clean. For example, the Daily VWAP will automatically hide when you switch to the Daily chart, as it would otherwise appear as a single flat line.

Details

The script calculates the VWAP by accumulating the product of price and volume and dividing it by the total accumulated volume for the specific period (Daily, Weekly, or Monthly). Unlike a simple moving average, VWAP gives more weight to price points with higher trading activity. The standard deviation bands are calculated using the variance of the price relative to the VWAP, providing a statistical measure of price dispersion.

Settings

• Show Daily/Weekly/Monthly VWAP: Toggles the visibility of the respective periodic VWAP line.
• Show St Dev Band: Toggles the visibility of the two levels of standard deviation bands for the specific timeframe.
• Hide in Own Time Frame: When enabled, prevents the indicator from displaying a periodic VWAP if the chart timeframe is equal to or higher than that period.
• Source: Determines the price data used for the calculation (default is HLC3).
• St Dev 1: Sets the multiplier for the first set of standard deviation bands.
• St Dev 2: Sets the multiplier for the second set of standard deviation bands.

FAQ

How do I use the bands for trading?

The bands represent statistical deviations from the average price. Prices reaching the St Dev 2 bands are often considered "stretched" and may signal a potential reversal or pause in the current trend.

Why doesn't the Daily VWAP show on my 1D chart?

If "Hide in Own Time Frame" is enabled, the script hides the level to prevent chart clutter, as a Daily VWAP on a Daily chart is simply a single point or a flat line per bar.

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.