VWAP %B

VWAP %B - Volume Weighted Average Price Percent B

The VWAP %B indicator combines the reliability of VWAP (Volume Weighted Average Price) with the analytical power of %B oscillators, similar to Bollinger Bands %B but using volume-weighted statistics.

## How It Works

This indicator calculates where the current price sits relative to VWAP-based standard deviation bands, expressed as a percentage from 0 to 1:

• **VWAP Calculation**: Uses volume-weighted average price as the center line
• **Standard Deviation Bands**: Creates upper and lower bands using standard deviation around VWAP
• **%B Formula**: %B = (Price - Lower Band) / (Upper Band - Lower Band)

## Key Levels & Interpretation

• **Above 1.0**: Price is trading above the upper VWAP band (strong bullish momentum)
• **0.8 - 1.0**: Overbought territory, potential resistance
• **0.5**: Price exactly at VWAP (equilibrium)
• **0.2 - 0.0**: Oversold territory, potential support
• **Below 0.0**: Price is trading below the lower VWAP band (strong bearish momentum)

## Trading Applications

**Trend Following**: During strong trends, breaks above 1.0 or below 0.0 often signal continuation rather than reversal.

**Mean Reversion**: In ranging markets, extreme readings (>0.8 or <0.2) may indicate potential reversal points.

**Volume Context**: Unlike traditional %B, this incorporates volume weighting, making it more reliable during high-volume periods.

## Parameters

• **Length (20)**: Period for standard deviation calculation
• **Standard Deviation Multiplier (2.0)**: Controls band width
• **Source (close)**: Price input for calculations

## Visual Features

• Reference lines at key levels (0, 0.2, 0.5, 0.8, 1.0)
• Background highlighting for extreme breaks
• Real-time values table
• Clean oscillator format below price chart

Perfect for intraday traders and swing traders who want to combine volume analysis with momentum oscillators.