This script combines and averages Volume-Weighted Moving Averages in a specific way to make a unique ATR band that expands and retracts based on the volume in the current market. This indicator allows for viewing up to 4 VWATR Bands on all the major trading timeframes.
This creates support and resistance levels that are fluid enough for traders to use these 4 methods:
- Identify a range to trade between in sideways markets. - Identify when we are beginning a move(breaking out of the bands and using them as support to trade from). - During a trend, traders can use higher timeframe VWATR Bands to identify take profits or potential rejection points. - Identify when a trend may be over(losing the band as support after a breakout).
NOTE: This script will work fine on identifying crypto assets and stocks, but markets with different volume parameters will negatively affect the accuracy of this script.
Nota Keluaran
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Made some additions: - Optional labels that show you which timeframe each VWATR Band is from. - Option to change the colors of the VWATR. These tweaks help traders read the chart a bit easier.
Hope to give this a try!