VWAP Indicator

The VWAP indicator is our version of the popular Volume-Weighted Average Price indicator.

The VWAP is the ratio between the value traded (price multiplied by the number of volume traded) and the total volume traded over a specific time period. As a result, it measures the average price of the instrument much better than the simple moving average.

Although there are many ways to use the VWAP, most investors use it to calculate the daily average.

The Indicator Works in Five Modes

Moving - In this mode, the WVAP works as Moving Average with the specified period.
Daily - In this mode, the VWAP is calculated from the start to the end of the day.
Weekly - In this mode, the VWAP is calculated from the beginning to the end of the week.
Session Time - In this mode, the user can set the beginning and end hours for the VWAP calculation.

How to Use the VWAP Indicator

Many traders use VWAP bands in the same way as Bollinger Bands. You can look for reverse trades on the second and third standard deviations from the VWAP. Combined with price action or candle patterns, you can achieve excellent results. Of course, the VWAP indicator can also be used for benchmarking, as many investors are doing.

Main Features

Several optional modes
Real and tick volume calculation (MT5)
First, second and third standard deviation from the VWAP
Very fast and reliable indicator
Customizable parameters (Colors, Line thickness, VWAP period...)
Can be used for creating EA (Expert Advisor)
Available for MT4 and MT5

Input Parameters

Volume_Method - Allows choosing between tick or real volume.
VWAP_Mode - Allows choosing between moving, daily, weekly, monthly and session time modes. (For iCustom function - moving = 0, daily = 1, weekly = 2, monthly = 3 and session time mode = 4)
MA_Period - Period of MA calculation.
Session_Start_Hour - Allows setting start hour if the session time mode is selected. In another case, the parameter is ignored.
Session_End_Hour - Allows setting end hour if the session time mode is selected. In another case, the parameter is ignored.
Color_VWAP - Color of the VWAP line.
Color_Deviation1 - Color of the first deviation lines.
Color_Deviation2 - Color of the second deviation lines.
Color_Deviation3 - Color of the third deviation lines.
Visibility_VWAP - Allows enabling or disabling displaying of VWAP line.
Visibility_Deviation1 - Allows enabling or disabling displaying of the first deviation lines.
Visibility_Deviation2 - Allows enabling or disabling displaying of the second deviation lines.
Visibility_Deviation3 - Allows enabling or disabling displaying of the third deviation lines.