AE VWAP mtf
- 指标
- 版本: 1.4
AE-VWAP with Rejection Bands for Daily/ Weekly / Monthly
AE-VWAP is a professional custom indicator that helps you evaluate the fair price of an instrument based on trading volume. The calculation is based on VWAP (Volume Weighted Average Price), a volume—weighted average price that is widely used in intraday and medium-term analysis.
Unlike regular moving averages, VWAP takes into account not only the price, but also the volume, giving more weight to those levels where the main trading activity took place. This allows you to better understand where the real market value of an asset is located within the selected period.
The current version of the indicator supports the calculation of VWAP in three modes at once:
Daily — daily VWAP
Weekly — weekly VWAP
Monthly — monthly VWAP
Additionally, the indicator builds two pairs of bands based on the weighted standard deviation of the price relative to the VWAP. This helps to visually assess the price expansion, the strength of the movement, and potential areas of deviation from fair value.
What the indicator shows
The indicator calculates:
the main VWAP line
Upper Band 1 / Lower Band 1 — bands of the first deviation
Upper Band 2 / Lower Band 2 — bands of the second deviation
The calculation is based on cumulative values.:
Amounts Price × The amount
of the Price amount is 2 ×
Total volume for the selected period
When the accumulation period changes, they are automatically reset, so that the VWAP always remains relevant for the current day, week, or month.
Why use AE-VWAP
Determination of a fair price
VWAP shows the average price based on volume, which gives a more objective assessment of the market balance than the usual average lines.
Assessment of market sentiment
If the price stays above the VWAP, this may indicate a predominance of buyers. If it is lower, it is controlled by sellers.
Search for entry and exit points
VWAP is often used as a guideline for entering a position, taking profits, or evaluating the quality of execution of trades.
Trend confirmation
When there is a strong movement, the price is often held on one side of the VWAP, and the bands help to understand how much the movement has already expanded.
Estimation of the deviation of the price from the average cost
The bands of the standard deviation allow you to quickly see when the price is in the normal range and when it goes into the area of statistical expansion.
Pure visualization on the graph
The indicator displays data in the form of clear lines directly on the chart, without overloading the window with unnecessary elements.
