Order-Flow Proxy (VWAP Deviation Zones)
This indicator visualizes price deviation from the session VWAP to identify institutional bias , over-extension , and potential reversal zones . It highlights when price strays too far from fair value due to order-flow imbalance.
Concept
VWAP as Fair Value: Institutional benchmark for premium/discount zones.
Positive Deviation (Top Zone): Price well above VWAP → potential overbought/short.
Negative Deviation (Bottom Zone): Price well below VWAP → potential oversold/long.
Z-Score Filter (optional): Shows only statistically extreme deviations.
Colors: 🔴 top (above VWAP), 🟢 bottom (below VWAP).
Usage Tips
Best on intraday (1m–1h) for mean-reversion/fade setups.
Combine with volume climax, liquidity sweeps, or displacement for confirmation.
Use alerts to catch VWAP over-extensions in real time.
Technical Notes
Deviation = (Price − VWAP) ÷ VWAP.
Z-score uses rolling SMA and standard deviation on deviation series.
Works with TradingView session VWAP on liquid markets.
License
Apache 2.0 — © 2025 tkarolak — Free to use with attribution; no endorsement implied.
