VWAP Monthly and Quarterly Bands

VWAP Bands

VWAP Bands are an extension of the VWAP indicator designed to help identify support and resistance zones around the volume-weighted average price.

The central line is the VWAP itself, representing the volume-weighted average price.
The upper and lower bands are calculated by adding and subtracting a defined number of standard deviations from the VWAP. These bands create a price range within which the market tends to fluctuate.

The upper and lower bands act as resistance and support zones:

• When price approaches the upper band, it may indicate a potential selling area (resistance).

• When price approaches the lower band, it may indicate a potential buying area (support).

The direction and slope of the bands can help identify the strength and direction of a trend:

• Upward-sloping bands suggest an uptrend

• Downward-sloping bands suggest a downtrend

VWAP Bands can be applied to different timeframes and adapt to various trading styles, from day trading to swing trading.

⚙️ Inputs (Parameters)

🔹 Price Type

Defines which price will be used for the VWAP calculations.
The default option is the Typical Price (HLC/3).

Available options:

1. Close – Closing Price

2. Open – Opening Price

3. High – High Price

4. Low – Low Price

5. HL / 2 – Median Price (Arithmetic mean of High and Low)

6. HLC / 3 – Typical Price (Arithmetic mean of High, Low, and Close)

7. OHLC / 4 – Mean Price (Arithmetic mean of Open, High, Low, and Close)

📌 Note:
The Typical Price (HLC/3) is the standard price used for VWAP calculations in Profit and BlackArrow (Nelogica) platforms.

🔹 Volume Type

Defines which volume will be used for the VWAP calculations.
The default option is Tick Volume.

Available options:

1. Tick Volume – Tick-based volume

2. Real Volume – Actual traded volume

👁️ Enable or Disable VWAP and Bands

• VWAP Daily – Enable or disable

• VWAP Weekly – Enable or disable

• VWAP Monthly – Enable or disable

VWAP Monthly Bands – Display Options

• VWAP Monthly First Band – Enable or disable

• VWAP Monthly Second Band – Enable or disable

• VWAP Monthly Third Band – Enable or disable

• VWAP Monthly Fourth Band – Enable or disable

• VWAP Monthly  Fifth Band – Enable or disable

VWAP Quarterly Bands – Display Options

• VWAP Quarterly First Band – Enable or disable

• VWAP Quarterly Second Band – Enable or disable

• VWAP Quarterly Third Band – Enable or disable

• VWAP Quarterly Fourth Band – Enable or disable

• VWAP Quarterly Fifth Band – Enable or disable

📐 Deviation Multiplier

Defines the distance of each band from the VWAP, based on standard deviations:

• First deviation multiplier – 0.5 (default)

• Second deviation multiplier – 1.0 (default)

• Third deviation multiplier – 1.5 (default)

• Fourth deviation multiplier – 2.0 (default)

• Fifth deviation multiplier – 2.5 (default)

🔄 Available Versions

• VWAP Indicator – MT5

📞 Support and Assistance

If you have any questions or need additional guidance, please feel free to contact us.
We are ready to assist you.