Rolling VWAP - Vhunt Scalper bot

The Rolling VWAP - Vhunt Scalper bot indicator is a modified Volume Weighted Average Price tool designed to identify quick scalping opportunities and mean-reversion points on lower timeframes.

Usage

The tool is primarily used for scalping in high-volatility markets such as cryptocurrencies, although it is applicable to other asset classes. It provides a central rolling VWAP line accompanied by two sets of dynamic bands that act as support and resistance levels.

Long Entry Conditions: A potential long signal occurs when the price trades below the secondary band (Band 2) while Band 2 is positioned below Band 1. This suggests an oversold condition relative to the rolling volume-weighted average.

Short Entry Conditions: A potential short signal occurs when the price trades above the secondary band (Band 2) while Band 2 is positioned above Band 1. This suggests an overbought condition where a mean-reversion toward the VWAP may occur.

The indicator is optimized for the 1-minute timeframe but remains effective on timeframes up to 30 minutes.

Details

Unlike standard anchored VWAPs, this script utilizes a rolling calculation window (240 periods) to ensure the data remains relevant to current market volatility. It calculates variance and standard deviation based on volume-weighted inputs to generate the outer bands. The tool also includes a percentage-based range calculation (Band 1) and a standard deviation-based calculation (Band 2) to provide a multi-layered view of price extremes.

Settings

VWAP range Settings

• Calculate Range: Toggles the visibility of the percentage-based range bands.
• Band 1: Adjusts the percentage offset from the VWAP for the range-based bands.

Standard Deviation Bands Settings

• Calculate Bands: Toggles the visibility of the standard deviation-based bands.
• Band 2: Adjusts the multiplier for the standard deviation calculation, determining the width of the outer volatility bands.

FAQ

How do I use the Rolling VWAP - Vhunt Scalper bot?

The tool is used to identify exhaustion points in price action. Traders look for price to pierce the outer bands during specific band alignments to time entries for quick mean-reversion trades.

What timeframes work best for this indicator?

The script is specifically designed for scalping on the 1-minute timeframe, but it can be used effectively on any timeframe up to 30 minutes.

How can I access this script?

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