Volume Weighted Average Price Bands (Forex & Crypto) Indicator on TradingView

The VWAP Bands Indicator (Volume-Weighted Average Price Bands) specifically evaluates price changes relative to daily trading volume. Understanding the impact of trading volume on a symbol's price trend is significant.

The VWAP Bands Indicator calculates the weighted average price over a specified time period by combining price and volume.

VWAP Bands Indicator Specifications

The table below provides a general overview of the specifications of the Volume Weighted Average Price (VWAP) Bands indicator:

Indicator in an Uptrend

In the price chart of the USD/JPY currency pair, when the price moves above VWAP, this indicates an uptrend or positive movement in the market.

Traders generally interpret these conditions as a buy signal.

Indicator in a Downtrend

The price chart of Bitcoin (BTC) in a 15-minute time frame is displayed. When the price falls below VWAP, it signals selling pressure and a downtrend in the market.

In such cases, the market tends to move downward, recognized as a sell signal or a negative trend.

VWAP Bands Indicator Settings

The image below shows the complete settings of the indicator:

• Period: Period;
• Source: Data source;
• Market Ultra Data: Ultra market data;
• Show VWAP: Display VWAP;
• Lvl 1 Multiplier: Level 1 multiplier;
• Lvl 2 Multiplier: Level 2 multiplier;
• Lvl 3 Multiplier: Level 3 multiplier;
• Color Fill Low Range: Low range color fill;
• Color Fill Mid Range: Mid-range color fill;
• Color Fill High Range: High range color fill.

Conclusion

By combining price and volume, the VWAP indicator enables analysts to identify market trends and determine suitable entry and exit points for trades.

This indicator is designed for crypto and forex markets and is highly applicable to markets influenced by trading volume.