Z Distance from VWAP Enhanced (ZVWAP)

18 Ağu

The "Z Distance from VWAP Enhanced" (ZVWAP) indicator is a comprehensive oscillator that provides deep insights into market dynamics. It calculates a Z-score, which tells you how many standard deviations the current price is away from the VWAP. This normalization makes it a consistent and reliable tool for identifying market extremes.

The indicator comes packed with features, including:

• Customizable Overbought & Oversold Zones
  
• Built-in Bullish & Bearish Divergence Detection
  
• Automatic Trendline Plotting
  
• A Moving Exponential Average (MEA) for crossover signals
  
• Fully customizable alerts for every key event.
  

How to Use It - The BTC Dominance Strategy for Altcoins

As shown in the screenshot, this indicator is an exceptional tool for trading altcoins by analyzing the BTC Dominance (BTC.D) chart. The relationship is typically inverse:

When ZVWAP on BTC.D is RISING (or Overbought) ➔ It's BEARISH for Altcoins.
This means Bitcoin is gaining dominance, and capital is flowing out of altcoins and into Bitcoin. This is a time to be cautious with or short altcoins.

When ZVWAP on BTC.D is FALLING (or Oversold) ➔ It's BULLISH for Altcoins.
This means Bitcoin is losing dominance, and capital is flowing into altcoins, often starting an "altcoin season." This is a great time to look for long entries on your favorite altcoins.

Key Signals on the BTC.D Chart:

1. Zone Entries: When ZVWAP enters the red (Overbought) zone, prepare for altcoins to weaken. When it enters the blue (Oversold) zone, look for altcoin strength.
   
2. MEA Crossover: A crossover of the yellow ZVWAP line below the cyan MEA line is a strong confirmation that dominance is falling and the trend is becoming bullish for altcoins.
   
3. Divergences: A bearish divergence on the BTC.D chart can be an early warning that dominance is about to fall, signaling a potential bullish move for altcoins.
   

Key Features Explained

• Overbought / Oversold Zones: The red and blue shaded areas clearly define when an asset is statistically over-extended. These are prime areas to look for mean reversion or trend exhaustion.
  
• Divergence Detection: The script automatically detects and plots divergences between price and the ZVWAP.
  • Bullish Divergence: Price makes a lower low, but ZVWAP makes a higher low. (Potential buy signal).
  • Bearish Divergence: Price makes a higher high, but ZVWAP makes a lower high. (Potential sell signal).
  
• The Reference Lines (+1 / -1): These gray lines represent one standard deviation from the VWAP. They act as an early warning system. When the ZVWAP crosses these lines, it shows that momentum is building, and the price is starting to deviate significantly from its average.
  
• Automatic Trendlines: The indicator can automatically draw and manage trendlines based on recent pivots in the ZVWAP, helping you visualize the current momentum and potential breakout points. This feature can be turned off if you prefer a cleaner chart.
  

Customization and Alerts

The indicator is fully customizable. You can adjust the lengths, zone levels, and visual settings to fit your trading style. Most importantly, it includes a comprehensive set of alerts:

• Enter Overbought Zone
  
• Enter Oversold Zone
  
• Bullish Divergence Detected
  
• Bearish Divergence Detected
  
• Enter Any Zone (OB/OS) - a single alert for either condition.
  
• Any Divergence (Bull/Bear) - a single alert for any divergence.
  

This allows you to stay informed of every important signal without having to watch the charts all day.

https://i.imgur.com/grt2PjF.png

evvelsi gün

Sürüm Notları

The "Z Distance from VWAP Enhanced" (ZVWAP) indicator is a comprehensive oscillator that provides deep insights into market dynamics. It calculates a Z-score, which tells you how many standard deviations the current price is away from the VWAP. This normalization makes it a consistent and reliable tool for identifying market extremes.

The indicator comes packed with features, including:

Customizable Overbought & Oversold Zones
Built-in Bullish & Bearish Divergence Detection
Automatic Trendline Plotting
A Moving Exponential Average (MEA) for crossover signals
Fully customizable alerts for every key event.

How to Use It - The BTC Dominance Strategy for Altcoins

As shown in the screenshot, this indicator is an exceptional tool for trading altcoins by analyzing the BTC Dominance (BTC.D) chart. The relationship is typically inverse:

When ZVWAP on BTC.D is RISING (or Overbought) ➔ It's BEARISH for Altcoins.
This means Bitcoin is gaining dominance, and capital is flowing out of altcoins and into Bitcoin. This is a time to be cautious with or short altcoins.

When ZVWAP on BTC.D is FALLING (or Oversold) ➔ It's BULLISH for Altcoins.
This means Bitcoin is losing dominance, and capital is flowing into altcoins, often starting an "altcoin season." This is a great time to look for long entries on your favorite altcoins.

Key Signals on the BTC.D Chart:

Zone Entries: When ZVWAP enters the red (Overbought) zone, prepare for altcoins to weaken. When it enters the blue (Oversold) zone, look for altcoin strength.
MEA Crossover: A crossover of the yellow ZVWAP line below the cyan MEA line is a strong confirmation that dominance is falling and the trend is becoming bullish for altcoins.
Divergences: A bearish divergence on the BTC.D chart can be an early warning that dominance is about to fall, signaling a potential bullish move for altcoins.

Key Features Explained

Overbought / Oversold Zones: The red and blue shaded areas clearly define when an asset is statistically over-extended. These are prime areas to look for mean reversion or trend exhaustion.
Divergence Detection: The script automatically detects and plots divergences between price and the ZVWAP.
• Bullish Divergence: Price makes a lower low, but ZVWAP makes a higher low. (Potential buy signal).
• Bearish Divergence: Price makes a higher high, but ZVWAP makes a lower high. (Potential sell signal).
The Reference Lines (+1 / -1): These gray lines represent one standard deviation from the VWAP. They act as an early warning system. When the ZVWAP crosses these lines, it shows that momentum is building, and the price is starting to deviate significantly from its average.
Automatic Trendlines: The indicator can automatically draw and manage trendlines based on recent pivots in the ZVWAP, helping you visualize the current momentum and potential breakout points. This feature can be turned off if you prefer a cleaner chart.

Customization and Alerts

The indicator is fully customizable. You can adjust the lengths, zone levels, and visual settings to fit your trading style. Most importantly, it includes a comprehensive set of alerts:

Enter Overbought Zone
Enter Oversold Zone
Bullish Divergence Detected
Bearish Divergence Detected
Enter Any Zone (OB/OS) - a single alert for either condition.
Any Divergence (Bull/Bear) - a single alert for any divergence.

This allows you to stay informed of every important signal without having to watch the charts all day.