Vwap with deviation

This indicator plots a VWAP (Volume-Weighted Average Price) with dynamic deviation bands around it.

VWAP Calculation

VWAP is computed per session, resetting at the start of each new session.

It uses cumulative volume and price–volume products to calculate the session-average price weighted by volume.

Deviation Bands

The script calculates variance and standard deviation of price relative to VWAP.

Upper and lower bands are drawn at:

VWAP±Deviation Multiplier×Std Dev

Usage

VWAP (orange line) serves as a dynamic average price benchmark used by institutions.

Deviation bands (purple lines) highlight overbought/oversold zones relative to VWAP.

Crossovers of price with VWAP or its bands can signal mean reversion, trend continuation, or volatility extremes.

Flexibility

The Deviation Multiplier input lets users adjust sensitivity (e.g., 1 = 1 standard deviation, 2 = 2 deviations, etc.).