VWAP With Alerts MT4

This VWAP is a simple VWAP, but we've incorporated notifications that inform you when the price hits or crosses the VWAP line.

This indicator is a traditional VWAP indicator for MetaTrader 4 (MT4).

The default parameters are those of the normal VWAP, but you have the ability to modify the VWAP calculation, and the best part:

When the price touches or crosses the VWAP, you will be notified through alerts, mobile notifications, email, or sound events.

Parameters:

VWAP Cycle

The VWAP performs its calculations within a specific time interval. The conventional VWAP starts a new analysis daily, but in this indicator, in addition to having this option as the default, you can choose the desired period to calculate the VWAP. This means that, even when operating on the M1 timeframe, you can view the VWAP calculation for H1, renewing with each new bar on the H1 timeframe. This recalculation occurs according to the time cycle you choose.

However, there is no need to worry about it at the moment, as the default parameters are set according to the conventional VWAP. Just download this VWAP indicator and add it to your MetaTrader 5 (MT5) chart.

Price Type

The default setting for VWAP calculation uses the closing price, which corresponds to the conventional method of simple VWAP. However, there is an option to choose from different price types to calculate VWAP. The alternatives include:

1. Close
2. Open
3. High
4. Low
5. Median
6. Typical
7. Weighted
8. Up, meaning the highest price between open and close (to ignore shadows)
9. Down, meaning the lowest price between open and close (to ignore shadows)

Volume Type

You have the option to select the desired volume type or leave it in automatic mode. The automatic option implies that the indicator will prioritize the actual volume of asset transactions for VWAP calculation if this information is available from the broker.

Smoothing Methods for VWAP

The VWAP calculation process itself does not incorporate smoothing, but traders have found that by applying exponential smoothing to VWAP, opportunities can be identified more quickly.

1. Simple: This is the standard VWAP formula, where volume is weighted by price. It's the simple VWAP you're looking for.
2. Exponential: In this method, VWAP gives more weight to recent prices, allowing for more agile trading or scalping opportunities. However, in very short timeframes, such as M5 and M1, it is not advisable to use this calculation; it is more suitable to employ the Linear Weighted method due to distortions caused by extreme tick volume variation on smaller charts than M5.
3. Smoothed: Employs the same smoothing calculation used in the moving average, applied to VWAP. It is quite similar to the simple VWAP calculation.
4. Linear Weighted: An extremely fast version, similar to the Exponential approach of VWAP. However, it is effective on all timeframes as it does not exhibit distortions on charts with timeframes smaller than M5.

VWAP Channel

To introduce margins to your VWAP, you can choose a percentage variation to create a shift in the VWAP, which will also trigger alerts later.

• Band Up: We introduce bands for these VWAPs. This band represents a percentage variation relative to the main VWAP price. This feature allows you to create a channel around your VWAP or establish a margin to identify when the price is very close. The recommendation is to use 0.33, as it is the most commonly employed value in VWAP channels.
• Band Down: Similar to Band Up but applied in the downward direction.

Colors, Styles, and Line Widths

Colors, styles, and line widths are set at the time of inserting the indicator on the chart. So, by clicking on the "Colors" tab, you can choose the desired style for the simple VWAP and its respective bands.

Alerts and Notifications When the Price Touches or Crosses the VWAP

Here is the special touch, the icing on the cake: the ability to receive notifications on your phone when the price reaches the VWAP. This means you don't have to constantly watch the chart and can use the time for other activities while waiting for the price to touch the VWAP. Below is a list of features provided by the VWAP indicator with alerts:

• Play Sound: This VWAP has sound alerts that emit a sound when the VWAP touches or crosses its main lines or margin bands.
• Alert: This alert displays a message on your MetaTrader when the price touches or crosses the VWAP. This functionality also applies to the bands.
• Phone Notification: By adding the VWAP indicator to your MetaTrader, it will send push notifications to your phone when the price touches or crosses the VWAP.
• Email: Sends an email when the price touches or crosses the VWAP.

Types of Alerts for When the Price Touches the VWAP

You can choose to leave them disabled (default setting) or activate them individually to receive alerts whenever an event occurs between the price and the VWAP. The available options include:

1. Do Not Notify
2. Automatic: By choosing HIGH or UP as the basis for calculating VWAP, only upward touches of the price will be alerted. If LOW or DOWN is chosen, only downward touches will be alerted. For all other prices used as the basis for VWAP calculation, you will receive alerts for touches of the price on the VWAP in both directions, from top to bottom and from bottom to top.
3. Notify Only when the price touches from the top
4. Notify Only when the price touches from the bottom
5. Notify Every Time the price touches the VWAP from top to bottom or from bottom to top

Types of Alerts for When the Candle Closes Crossing the VWAP

1. Do Not Notify
2. Automatic: By choosing HIGH or UP as the basis for calculating VWAP, only when the candle closes crossing the VWAP from bottom to top will be alerted. If LOW or DOWN is chosen, only when the candle closes crossing the VWAP from top to bottom will be alerted. For all other prices used as the basis for VWAP calculation, you will receive alerts for price VWAP crossing in both directions, from top to bottom and from bottom to top.
3. Notify Only when the candle closes crossing below the VWAP line
4. Notify Only when the candle closes crossing above the VWAP line
5. Notify Every Time the candle closes crossing the VWAP from top to bottom or from bottom to top

Alerts for Bands as Well

You also have the option to set these same alerts for the VWAP bands.

The Main Advantage

The best feature of this indicator lies in the alerts, providing significant time savings. This means you don't have to constantly monitor when the price will reach your VWAP. Additionally, you don't need to be in front of the computer because this VWAP indicator can send notifications to your phone. With this information in hand, you can make more informed and timely trading decisions.

Add me as a friend here on the MQL5 site; that way, you will receive notifications whenever I release a new project on this platform.

Simple VWAP indicator for MT5.