VWAP StdDev Bands v1[JopAlgo]

VWAP StdDev Bands v1 [JopAlgo] — value, stretch, and exhaustion around a session anchor
Core idea

This plots a session VWAP (volume-weighted average price) and two standard-deviation bands above/below it. It resets by Day / Week / Month (you choose). Read it as:

Value → the VWAP is where most business clears.

Stretch → the inner band (≈ ±1σ) is a normal excursion from value.

Exhaustion → the outer band (≈ ±2σ) is an uncommon excursion that often mean-reverts—unless the trend is very strong.

Think “how far from value are we” rather than “what’s the indicator doing.”

What you’ll see

VWAP line that changes color: above price = potential resistance, below price = potential support.

Inner bands (1× stdev) and Outer bands (2× stdev) with optional fills.

A Reset Period selector → Day, Week, or Month.

Read it fast → What’s the VWAP slope? Are we above or below it? Did price tag 1× or 2× and bounce, reject, or accept?

How the levels behave (and what to do)

VWAP → baseline value. In trend, pullbacks to VWAP often continue the move; in balance, VWAP is a magnet.

±1× band (inner) → “normal” stretch. In trend, first touches here often bounce back with the trend. In chop, tags often revert to VWAP.

±2× band (outer) → statistically rare stretch. Two common outcomes:

Reversion → tag ±2×, stall/wick, rotate back toward ±1× → VWAP.

Power trend → price walks the outside band; you ride pullbacks to ±1× instead of fading.

Practical tell → Distance from VWAP in “σ” terms =
(
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𝑖
𝑐
𝑒
−
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𝑤
𝑎
𝑝
)
/
𝑠
𝑡
𝐷
𝑒
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(price−vwap)/stDev. > 2 ≈ extreme; 1–2 ≈ stretched; < 1 ≈ near value.

How to use it (simple playbook)
Direction filter

Up bias → VWAP is rising and price is holding above.

Down bias → VWAP is falling and price is holding below.

Entry templates

Trend pullback → continuation
→ Up bias, pullback to VWAP or −1×, hold/reclaim, higher-low → enter long.
→ Targets → +1× → +2×; trail behind swings.
→ Mirror for shorts with VWAP / +1× in a downtrend.

Stretch fade (mean-revert)
→ In balance or late trend: tag +2×, momentum slows, CVD shows absorption, fail to accept beyond → short back to +1× → VWAP.
→ Mirror at −2× for longs.

Break + hold (expansion)
→ Tight market around VWAP; close through +1× with strong participation; small pullback holds +1× → continuation long toward +2×.
→ Mirror for −1× → −2× on shorts.

Location first (always)

Execute at real references: Volume Profile v3.2 [JopAlgo] (VAH/VAL/POC/LVNs) and Anchored VWAP [JopAlgo].

No level → no trade. VWAP bands + location remove most bad chases.

Entries, exits, risk

Stops → just beyond the band/level you used (e.g., below −1× on a trend-pullback long; beyond the ±2× wick on a fade).

Targets → ladder band → VWAP → opposite band or to VP nodes (POC/HVNs).

Management → if price accepts beyond your band (multiple closes), treat it as regime change and adjust.

Settings that matter (and how to tune)

VWAP Reset Period

Day → most reactive; good for intraday. Can be noisy on 24/7 crypto.

Week → steadier anchor; popular for 4H crypto swing.

Month → slow macro anchor; great for context, less for timing.

Inner/Outer multipliers

Defaults 1× and 2× approximate ±1σ / ±2σ.

Increase multipliers to reduce signals on volatile pairs; decrease to see more tags.

Band visibility / fills

If chart is busy, start with outer bands only. Add inner later for pullback timing.

Starter presets

Intraday (15m–1H) → Reset Day, Inner 1×, Outer 2×

Swing (4H) → Reset Week, Inner 1×, Outer 2×

High-vol pairs → consider 1.5× / 2.5× to avoid constant “extremes”

Pattern cheat sheet

First touch, strong trend → VWAP / ±1× acts like a trampoline → trade with trend.

Late push into +2× with lower momentum → fade back to +1× / VWAP.

Walk the band → repeated closes riding +2× (or −2×) → stop fading; buy pullbacks to +1× (or sell to −1×).

Flip at VWAP → lose VWAP and hold underneath → expect rotation toward the opposite bands.

Best combos (kept simple)

Volume Profile v3.2 [JopAlgo] → confluence at VAH/VAL/POC/LVNs upgrades any VWAP-band signal.

Anchored VWAP [JopAlgo] → a reclaim/reject of an AVWAP at a band is high-quality timing.

CVDv1 [JopAlgo] (optional) → take trades when taker flow aligns; skip if absorption fights your side.

Common mistakes this helps you avoid

Chasing far past +1× toward +2× without a pullback.

Fading power trends that walk the band (wait for acceptance loss first).

Trading mid-air between VWAP and bands with no level.

Using a Day reset on 4H crypto and calling every move an extreme—use Week for a steadier anchor.

Disclaimer

This indicator and write-up are for education only, not financial advice. Trading involves risk; results vary by market, venue, and settings. Test first, act at defined levels, and manage risk. No guarantees or warranties are provided.