VWAP+ Anchored with σ-bands
Our version of VWAP with a customizable anchor point (Session / Week / Month / Quarter / Year / Decade / Century) and three deviation levels ±1σ / ±2σ / ±3σ - this is not available in the standard TradingView.
How does VWAP+ differ from standard VWAP?
VWAP (Volume Weighted Average Price) is a volume-weighted average price. It's not a trend indicator, but a benchmark for the "fair" price over a period. Each trade is weighted by its volume—large trades shift the VWAP more than small ones. Institutional traders use it to evaluate execution quality: buying below the VWAP means you paid less than the "market average," while buying above it means you overpaid.
The standard VWAP on most platforms is the "daily VWAP," which resets every day at 00:00 UTC. This is a basic case, but extremely limited. During large movements, you lose your reference point. For example, when buying BTC After the halving in April 2024, the user is interested VWAP since halving, not today's. This is **Anchored VWAP**.
VWAP+ — our extended version with two key differences: (1) Anchor Period - configurable calculation start point (Session / Week / Month / Quarter / Year / Decade / Century), (2) three levels standard deviation from VWAP — ±1σ, ±2σ, ±3σ. These bands transform VWAP into a full-fledged channel for mean-reversion and take-profits, similar to Bollinger Bands, but tied to liquidity.
Seven Anchor Periods - for what purposes
Session — for scalping and intraday
Resets at the beginning of each UTC session. The base VWAP—rebounds from it are used for scalping entries in the direction of the trend.
Week / Month — for swing trading
Weekly and monthly VWAP are key support levels on the swing timeframe. ±1σ bands provide entry/exit zones based on mean reversion.
Quarter / Year — for positional transactions
The quarterly VWAP reflects the "average accumulation price" for long-term holders. A price below the annual VWAP in a bullish macro picture is an area of interest for long-term buying.
Decade / Century - macro anchors
Ten-year VWAP for BTC — is an approximation of the asset's "lifetime fair price." It's useful for understanding where the current price is relative to the asset's entire history.
What do ±σ bands show?
±1σ — statistically normal range of deviation. 68% of all price values for the period are within this zone. Touching ±1σ is normal volatility, without a signal.
±2σ — extended range. 95% of price values are within this range. Touching ±2σ is an extension, a potential mean-reversion setup. Long from -2σ or short from +2σ in the absence of a clear trend often works out.
±3σ — the extreme zone. 99.7% of values are within it. Price outside ±3σ indicates either very rare volatility (weekend/news) or a regime change. If the price breaks beyond ±3σ and holds there, the old distribution model is broken, and a new trend is beginning.
Typical setups on VWAP+
VWAP Bounce Long
In an uptrend, the price pulls back to the VWAP and bounces off it. Entry is after testing the VWAP from below with confirmation (candlestick pattern or volume). Stop loss is at -1σ. Take loss is at +1σ or +2σ.
Mean Reversion from +2σ
In a range-bound phase (without a strong trend), the price touches +2σ and returns to the VWAP. Counter-trend short position targeting the VWAP. Stop at +3σ.
Anchored VWAP from the event
Linking VWAP to ETF halving/launch/ATH. A price below this VWAP means "average buyers are negative on the event." This is a strong psychological level—they either exit with a loss or defend their positions.
Multi-Timeframe Confluence
When the daily, weekly, and monthly VWAPs converge in the same zone, this is a strong support/resistance zone. The confluence of several VWAPs is the point where institutions are prepared to defend the price.
Related tools
Adjust the Anchor Period and σ-bands in SuperChart
The standard TradingView doesn't have either the Anchor Period button or σ-bands—they're available only in paid third-party indicators. We have VWAP+ built into the chart by default.
Open VWAP+ on BTC