Monthly VWAP

7 Sep

Description
This indicator identifies potential mean reversion opportunities by tracking price deviations from monthly VWAP with dynamic volatility-adjusted thresholds.

Core Logic:
The indicator monitors when price moves significantly away from monthly VWAP and looks for potential reversal opportunities. It uses ATR-based dynamic thresholds that adapt to current market volatility, combined with volume confirmation to filter out weak signals.

Key Features:

• Adaptive Thresholds: ATR-based bands that adjust to market volatility
  
• Volume Confirmation: Requires average volume spike to validate signals
  
• Monthly Reset: VWAP anchors reset each month for fresh reference levels
  
• Visual Clarity: Color-coded deviation line with background highlights for active signals
  
• Info Panel: Shows days from anchor and current price context vs fair value
  

Signal Generation:

• Buy Signal: Price below monthly VWAP by threshold amount with elevated volume
  
• Sell Signal: Price above monthly VWAP by threshold amount with elevated volume
  
• Neutral: Price within threshold range or insufficient volume
  

Best Used For:

• Mean reversion strategies in ranging markets
  
• Identifying potential oversold/overbought conditions
  
• Understanding price position relative to monthly fair value
  

7 Sep

Nota Keluaran

Added OHLC candle visualization showing complete price action around monthly VWAP levels instead of simple line plot. Now captures rejection wicks, intraday ranges, and structural behavior at fair value.
New Features:

• OHLC deviation candles reveal full price structure
  
• Enhanced signals detect both closes beyond thresholds AND wick touches at key levels
  
• Non-repainting logic using confirmed bars
  
• "Return to Fair Value" alert for mean reversion opportunities