VWAP + Volume Spikes See Where Smart Money Exhausts

Volume tells the truth. VWAP tells the bias. This script shows both — live.
If you trade intraday momentum, reversals, or liquidity sweeps, this indicator is built for you.
It shows where volume spikes hit extreme levels, anchored around VWAP and its dynamic bands, so you can instantly spot capitulation or hidden absorption.

🎯 What This Indicator Does

✅ Plots VWAP — session-anchored, updates automatically
✅ Adds dynamic VWAP bands — standard deviation envelopes showing volatility context
✅ Highlights volume spikes — colored candles + background for abnormal prints
✅ Includes alerts — “Volume Spike”, “VWAP Cross”, or a combined alert with direction
✅ Clean visual design — instantly readable in fast markets

It’s your visual orderflow radar — whether you’re trading gold, indices, or small caps.

🔍 Why It Works

Institutions build and unwind positions around VWAP.
Retail often chases volume… this script shows you when that volume becomes too extreme.
A spike above VWAP near resistance? → Likely distribution.
A spike below VWAP near support? → Likely capitulation.

Combine volume exhaustion + VWAP context, and you’ll see market turning points form before most indicators react.

⚙️ Inputs You Can Tune

Bands lookback: adjusts how reactive the VWAP bands are

Band width (σ): set how tight or wide your deviation envelope is

Volume baseline length: controls how “abnormal” a spike must be

Spike threshold: multiplier vs. average volume

Toggle color-coding, bands, and labels

Default settings work well across 1m–15m intraday charts and 1h–4h swing frames.

💡 How Traders Use It

1️⃣ Fade Parabolics:
When a green spike candle pierces upper VWAP band on high volume → smart money unloading.
Look for rejection and short into VWAP.

2️⃣ Catch Capitulations:
When a red spike candle dumps below lower VWAP band → panic selling.
Watch for stabilization and long back to VWAP.

3️⃣ VWAP Rotation Plays:
Alerts for price crossing VWAP help you spot shift in intraday control.
Above VWAP = buyers in charge.
Below VWAP = sellers in charge.

🧠 Best Practices

Pair it with Volume Profile or Delta/Flow tools to confirm exhaustion.

Don’t chase — wait for spike confirmation + reversal candle.

Use it on liquid tickers (NASDAQ, SPY, GOLD, BTC, etc.).

Great for Dux-style small-cap shorts or index pullbacks.

🔔 Alerts Ready

Choose from:

Volume Spike (single-bar explosion)

VWAP Cross Up/Down (trend shift confirmation)

One Combined Alert (any signal, includes ticker, price, and volume)

Set once — get real-time push notifications, Telegram, or webhook signals.

📊 My Favorite Setups

US100 / NASDAQ: fade rallies above VWAP + spike

Gold / Silver: trade reversals from VWAP bands

Small caps: short back-side after volume climax

ES, DAX, Oil: scalp VWAP rotation with confluence

❤️ Support This Work

I release free and premium scripts weekly — combining smart money concepts, VWAP tools, and volume analytics.

👉 Follow me on TradingView for more indicators and setups.
👉 Comment “🔥” if you want me to post the multi-timeframe VWAP + Volume Pressure version next.
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