Percent of Stocks Above VWAP

The Percent of Stocks Above VWAP indicator tracks market breadth by visualizing the percentage of all U.S. stocks currently trading above their Volume Weighted Average Price (VWAP). This tool is designed to help traders gauge overall market sentiment and momentum by identifying overbought or oversold conditions across the broad equity market.

Usage

The indicator is primarily used as a market breadth filter for trading individual stocks or major indices such as the SPX, QQQ, and IWM.

• Momentum Shifts: When the line crosses the 50% midpoint, the script plots a triangle (green for bullish, red for bearish). This indicates that the majority of the market has shifted its position relative to the VWAP.
• Overbought/Oversold Zones: Default levels are set at 60% (Overbought) and 40% (Oversold).
  • Overbought (> 60%): The background is shaded green. Traders often use this to avoid new short positions or to look for mean-reversion short entries when the line exits this zone.
  • Oversold (< 40%): The background is shaded red. Traders often use this to avoid new long positions or to look for long entries when the line begins to rise out of this zone.
• Trend Smoothing: An integrated Exponential Moving Average (EMA) of the breadth line helps identify the broader trend of market participation.

Details

This indicator utilizes the "PCTABOVEVWAP.US" ticker data provided by TradingView. Because it relies on aggregate U.S. stock data, the indicator only updates during New York market hours (09:30 - 16:00 EST). During out-of-market hours, the calculation resets or holds to prevent EMA distortion. The core calculation determines whether the current aggregate percentage is rising or falling, color-coding the plot to reflect immediate momentum.

Settings

General Settings

• Overbought Level: Defines the upper threshold (default 60) where the market is considered over-extended to the upside.
• Oversold Level: Defines the lower threshold (default 40) where the market is considered over-extended to the downside.
• EMA of Line: Adjusts the length of the Exponential Moving Average used to smooth the breadth data and determine the secondary trend.

FAQ

How do I access Percent of Stocks Above VWAP?

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

Why does the indicator only update during specific times?

The indicator relies on the PCTABOVEVWAP.US data feed, which represents live U.S. equity markets. Consequently, it only provides active updates during regular New York Stock Exchange trading hours.

Can I use this for trading Futures?

Yes. While the data is derived from the broad stock market, it is highly correlated with index futures like ES, NQ, and RTY. It serves as a powerful confirmation tool for identifying the directional bias of the underlying basket of stocks.