  
  Free Indicator

Volume Weighted Reversal Bands for TradingView

Volume Weighted Reversal Bands is a free TradingView indicator combining VWMA 100, VWMA 500, VWMA 1000, and VWAP into a single hybrid line with 10 percentage deviation bands in each direction. The bands act as dynamic support, resistance, and reversal zones. Scalpers use 0.5% deviation on 1-minute charts; swing traders increase it on higher timeframes.

Built by Lane Dotson · Last updated September 28, 2022 · View on TradingView →

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What It Does

Core Features

A volume-weighted moving average and VWAP hybrid with percentage deviation channels creating dynamic support, resistance and reversal zones that price consistently returns to.

Custom VWAP/VWMA Hybrid Main Line

The main line (the fattest line on the chart) is calculated as: (VWMA 100 + VWMA 500 + VWMA 1000 + VWAP) / 4. This combines three volume-weighted moving averages at different lengths with the session VWAP, creating a reliable volume-weighted average that price regularly returns to. Expect price to gravitate back to this level. It acts as the center of gravity for the indicator.

Percentage Deviation Bands

10 levels are plotted in each direction above and below the main line, separated by the percentage deviation you set in the settings. Lower percentages give tighter bands for scalping (try 0.5% on the 1-minute chart). Higher percentages give wider bands for swing trading on higher timeframes. These bands act as dynamic support and resistance channels. Price will bounce between them as algos and institutional players hedge back and forth.

Short-Term Custom Moving Average

A thin short-term moving average is included with a custom calculation that takes 4 different length weighted moving averages and 4 volume-weighted moving averages and divides the total by 8. This provides a faster-reacting reference line alongside the main VWAP/VWMA hybrid. Lines turn green when price is above and red when below.

Standalone VWAP Line

A thin white line shows the standard session VWAP on its own, separate from the hybrid calculation. This can be toggled on or off in the settings.

Interpretation Guide

How to Trade With the Bands

Line Identification

Fattest line (center) - The main VWAP/VWMA hybrid moving average. Price regularly returns to this level.
Thick lines - The main line ± your percentage deviation. Primary support and resistance channels.
Blue line - Your current average price across all open orders
Remaining lines - Additional deviation levels (10 in each direction). Extended support/resistance zones.
Thin colored line - Short-term custom moving average. Green when price is above, red when below.
Thin white line - Standalone session VWAP.

Trading the Bands

These bands act as dynamic support and resistance. Scalp them back and forth as price bounces between levels. The levels work especially well on high-volume tickers (AAPL, SPY, BTC, ETH) because the volume weighting aligns with how institutional players and algos hedge their positions. When price reaches an outer band and starts to reverse, look for entries back toward the main line.

Timeframe & Deviation Suggestions

For scalping, use the 1-minute chart with 0.5% deviation for tight bands. For higher timeframes, increase the deviation percentage to widen the channels. The key is matching the deviation to your timeframe. Too tight on a higher timeframe will give too many levels, too wide on a lower timeframe won’t produce useful reversal zones.

CONFIGURATION

Settings Overview

All visual elements and the deviation percentage are customizable.

Main Settings

Setting	Default	Description
Percentage Deviation	0.5	The percentage spacing between each band level. Lower = tighter bands (scalping). Higher = wider bands (swing trading). Try 0.5% on 1-minute charts.
VWAP On/Off	On	Toggle the standalone VWAP line (thin white line) on or off.
Short MA On/Off	On	Toggle the short-term custom moving average on or off.
Colors & Line Widths	Varies	Customize all line colors and widths for the main line, bands, short MA and VWAP.

Good To Know

Important Notes & Limitations

⚠ Works best on high-volume tickers (AAPL, SPY, BTC, ETH, etc.) where institutional hedging activity keeps price tied to volume-weighted levels. Lower-volume tickers may not respect the bands as consistently.

⚠ Requires volume data. Tickers without volume will not produce accurate VWMA or VWAP calculations.

⚠ Adjust the percentage deviation when changing timeframes. A deviation that works on a 1-minute chart will be too tight on a daily chart and vice versa.

FREE ON TRADINGVIEW

Volume Weighted Reversal Bands is Free to Use

Add it to your TradingView charts and start trading volume-weighted reversal zones today. No subscription required.

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COMMON QUESTIONS

Frequently Asked Questions

The main line is (VWMA 100 + VWMA 500 + VWMA 1000 + VWAP) / 4. It combines three volume-weighted moving averages at different lookback periods with the session VWAP, then divides by 4. This creates a robust volume-weighted center line that price regularly returns to.

For scalping on the 1-minute chart, try 0.5%. For higher timeframes, increase the percentage. The right deviation depends on the volatility of the ticker and the timeframe. Start with 0.5% on low timeframes and increase until the bands create useful reversal zones on your chart.

Because the bands are volume weighted, they align with where institutional players and algorithms are hedging their positions. The big money moves price back and forth around these volume-weighted levels constantly, creating reliable reversal zones.

That is a short-term custom moving average calculated from 4 weighted moving averages and 4 volume-weighted moving averages divided by 8. It provides a faster-reacting reference line. It turns green when price is above and red when below.

It works on all markets including stocks, crypto, futures and forex, and on all timeframes. Adjust the deviation percentage when changing timeframes. Requires volume data from TradingView for accurate calculations.

CHANGELOG

Release Notes

    September 29, 2022
  

Initial Release

First public release of the Volume Weighted Reversal Bands with VWAP/VWMA hybrid main line, 10 percentage deviation bands in each direction, short-term custom moving average and standalone VWAP line.

What's Included

• Custom main line: (VWMA 100 + VWMA 500 + VWMA 1000 + VWAP) / 4

• 10 percentage deviation bands in each direction from the main line

• Short-term custom moving average (4 WMA + 4 VWMA / 8)

• Standalone VWAP line (toggleable)

• Customizable colors, line widths and deviation percentage

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