VWAP RIBBON

VWAP Ribbon Indicator


The VWAP Ribbon Indicator is a comprehensive technical analysis tool designed for TradingView, utilizing multiple Volume-Weighted Average Price (VWAP) calculations across different timeframes (Daily, Weekly, Monthly, Yearly, and Custom) to identify potential trading opportunities. It generates buy/sell signals, detects institutional bias, compression zones, breakouts, false breakouts, and reversions, providing traders with a robust framework for decision-making. The indicator is highly customizable, allowing users to tailor its settings to their trading style and timeframe.


Features

• Multi-Timeframe VWAPs: Plots VWAPs for Daily, Weekly, Monthly, Yearly, and a user-defined Custom timeframe, each with configurable deviation bands.
  
• Buy/Sell Signals: Generates signals based on price interactions with VWAPs, rebounds, and crosses, with adjustable sensitivity and minimum conditions.
  
• Institutional Bias: Identifies bullish or bearish institutional bias based on VWAP alignments and slopes.
  
• Compression Zones: Detects areas where VWAPs converge, indicating potential accumulation or distribution phases.
  
• Breakout and False Breakout Detection: Identifies confirmed breakouts and false breakouts after compression zones, with volume and price confirmation.
  
• Reversion Signals: Detects reversions after price excesses beyond VWAP deviation bands, anchored to pivot points.
  
• Custom VWAP: Allows users to define a custom VWAP timeframe (e.g., specific hours, days, weeks) for tailored analysis.
  
• Tactical Panel: Displays real-time signal and market data in a customizable panel (compact or detailed).
  
• Advanced Filters: Incorporates volume, RSI, EMA, and candlestick patterns to enhance signal accuracy.
  

How to Use
Adding the Indicator:

• In TradingView, go to the Pine Editor, paste the provided code, and click "Add to Chart."
  
• The indicator will overlay VWAP lines and deviation bands on your chart, with optional labels and a tactical panel.
  

Configuration: The indicator is divided into several input groups for easy customization:

• ⚙️ Activate VWAPs in Signals: Enable or disable Daily, Weekly, Monthly, Yearly, or Custom VWAPs for signal generation.
  
• Visual VWAP Ribbon Settings: Toggle visibility and adjust colors for VWAP lines and deviation bands. Customize the Custom VWAP timeframe (e.g., 4 hours, 2 days).
  
• Buy/Sell Signals: Enable labels for basic signals ("B" for Buy, "S" for Sell), set minimum conditions (1–10), and adjust signal sensitivity (0.1–1.0).
  
• Institutional Bias Conditions: Enable background coloring for bias, set minimum VWAP spacing (%), and optionally require price alignment with VWAPs.
  
• Statistical Signals: Enable reversion labels, adjust lookback periods, and set volume gates for reversions.
  
• VWAP Compression: Enable detection of VWAP convergence zones and breakout/false breakout signals.
  
• Custom Signals: Enable labels for Custom VWAP rebounds with configurable cooldowns.
  
• Pro Filters: Apply advanced filters like minimum VWAP slope, relative price confirmation, volume thresholds, RSI, and EMA weights.
  
• Signal Weight Configuration: Assign weights to various conditions (e.g., price crosses, rebounds) to fine-tune signal scoring.
  
• Tactical Panel: Enable the panel, choose its position (e.g., top-right), and select compact or detailed mode.
  

Interpreting Signals:

• Buy/Sell Signals: Appear as "B" (Buy) or "S" (Sell) labels with detailed tooltips listing triggered conditions (e.g., price crossing Daily VWAP, rebound from lower band). Signals require a minimum number of conditions (default: 3) and a normalized score above the sensitivity threshold (default: 0.5).
  
• Institutional Bias: Background coloring (green for bullish, red for bearish) indicates VWAP alignment (e.g., Daily > Weekly > Monthly) and slope conditions. Neutral bias has no coloring.
  
• Compression Zones: Gray background highlights areas where VWAPs are within a user-defined threshold (default: 0.5%), signaling potential accumulation/distribution.
  
• Breakout Signals: Labeled as "BREAK ▲" or "BREAK ▼" after exiting a compression zone with strong candlestick confirmation and volume.
  
• False Breakout Signals: Labeled as "FALSE ▲" or "FALSE ▼" when price crosses a Daily VWAP band but reverses back, indicating a failed breakout.
  
• Reversion Signals: Labeled as "▲ R ▬ BUY" or "▼ R ▬ SELL" at pivot points after price excesses beyond VWAP bands, confirmed by volume (if enabled).
  
• Custom VWAP Signals: Labeled as "C-BUY" or "C-SELL" for rebounds off the Custom VWAP’s deviation bands, with configurable volume and candlestick filters.
  
• Tactical Panel: Displays the latest signal, price, date, bias, compression status, trend direction, VWAP distances, volume state, and technical summary (slopes, band distances).
  

Best Practices:

• Timeframe Selection: The indicator auto-scales parameters for different timeframes (Daily+, Intraday ≥1h, Sub-hour). Adjust settings like lookbackBars or devThreshold for specific timeframes if autoScaleReversion is disabled.
  
• Signal Sensitivity: Increase signalSensitivity (e.g., 0.7) for stricter signals or decrease (e.g., 0.3) for more frequent signals. Adjust minConditions to balance signal frequency and reliability.
  
• Volume Filters: Enable useVolumeGate or useLiquidityFilter for high-liquidity assets to reduce false signals in low-volume conditions.
  
• Compression and Breakouts: Use compression zones to anticipate breakouts. Enable showBreakoutLabels and showfalseBreakoutLabels to monitor confirmed and failed breakouts.
  
• Custom VWAP: Set a specific timeframe (e.g., 4 hours) for intraday trading or longer periods (e.g., 2 weeks) for swing trading. Enable showCustomSignalLabels for tailored signals.
  
• Reversion Trading: Use reversion signals for mean-reversion strategies, especially in range-bound markets. Adjust devThreshold and pivotLength for sensitivity.
  
• Tactical Panel: Use the detailed panel for a quick overview of market conditions. Compact mode is ideal for minimal screen clutter.
  

Alerts:
Set up alerts for:

• Institutional Bias (Buy/Sell)
  
• VWAP Compression (Start/End)
  
• Basic Buy/Sell Signals
  
• Reversion Signals (Buy/Sell)
  
• Breakout Signals (Bullish/Bearish)
  
• False Breakout Signals (Bullish/Bearish)
  
• Custom VWAP Rebound Signals (Buy/Sell)
  
• Weekly/Monthly/Yearly VWAP Rebound Signals
  

In TradingView, go to the Alerts tab, select the indicator, and choose the desired condition. Customize alert messages as needed.


Notes
Performance: The indicator uses max_bars_back=5000 and max_labels_count=500 to ensure compatibility with most assets. For low-liquidity assets, consider enabling useLiquidityFilter to avoid noisy signals.

Customization: Experiment with weights in the "Signal Weight Configuration" group to prioritize specific conditions (e.g., increase wReboundD for Daily VWAP rebounds).

Limitations: Signals are based on historical data and VWAP interactions. Always combine with other analysis tools and risk management strategies.

License: This indicator is released under the Mozilla Public License 2.0.