Also shows the previous closing , which is usually very near the HLC3 standard for the previous time frame. i.e. The previous daily closing price is usually near the current Daily . Tickers interact well with the previous Daily and Weekly closing .
Enabling the STDEV bands shows 3 separate standard deviation levels, defaulted at 1, 2, and 3. The lookback period for the bands is always changing with each new bar, since the standard deviation is calculated from the current bar to the beginning of the period. This is different from , as the lookback is constant (usually 20 periods is the textbook default).
The STDEV bands interval of interest can be changed from Day (D), Week (W), Month (M), Quarter (Q), Year (Y).
Tickers tend to bounce very well on Daily, Weekly, and Yearly (Yes... Year). Use this code and observe the Year on several major symbols through the past few years and eyes will be opened.
- Updated to Pine V4.
- Added lines and labels for current VWAP values.
- Label size and opacity can be adjusted.
- Lines are shown when the label offset > 0.
- Line width and style can be adjusted.
- Use the boolean check buttons to hide/show the labels/lines for each of the 5 VWAP types.
- Use the boolean check box "Show Price" to hide/show all labels/lines.
I have also found that pullback trades (going long after a pullback) while the price is traveling in the upper STD1 - STD2 band have a very high degree of success. These are basically momentum trades. Works the same way when going short.