Weekly VWAP - Starts Monday 12AM

The Weekly VWAP - Starts Monday 12AM indicator provides a volume-weighted average price calculation that resets at the start of each trading week, helping traders analyze longer-term trends and institutional value levels on both daily and intraday timeframes.

Usage

The Usage of the Weekly VWAP is centered around identifying the average price paid for an asset over the course of the current week, weighted by volume. Because the calculation resets every week (Sunday/Monday open depending on the market), the indicator is most sensitive to price action at the beginning of the week and becomes more stable as volume accumulates toward Friday.

Traders often use this tool to:

• Identify the weekly trend: Price trading above the Weekly VWAP suggests a bullish weekly sentiment, while price below suggests bearish sentiment.
• Mean Reversion: Identifying overextended price movements away from the weekly average.
• Support/Resistance: The weekly average often acts as a dynamic level where institutional participants may look to add to positions.

Details

This script calculates the Volume Weighted Average Price (VWAP) by accumulating the product of price and volume, then dividing it by the total accumulated volume for that specific week. The isStartOfWeek logic ensures that the cumulative sums reset precisely when a new weekly bar is detected. This implementation uses the hlc3 (High + Low + Close / 3) as the default source, which is the industry standard for VWAP calculations.

Settings

• Source: Determines the price data used for the calculation (default is HLC3). Users can adjust this to Close, Open, or other price inputs if they wish to prioritize specific data points.

FAQ

How do I use the Weekly VWAP for trend confirmation?

If the price remains consistently above the Weekly VWAP line, it indicates that the average buyer for the week is in profit, suggesting a bullish trend. Conversely, staying below it indicates a bearish trend.

At what time does the indicator reset?

The indicator resets at the start of the first trading session of the week (typically Sunday evening or Monday 12 AM depending on the exchange and timezone), ensuring a fresh calculation for the new week.

How can I access Weekly VWAP - Starts Monday 12AM?

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