Order-Flow Proxy (VWAP Deviation Zones)

Order-Flow Proxy (VWAP Deviation Zones) helps traders visualize when market price moves unusually far away from its Volume-Weighted Average Price (VWAP) — a key fair-value level used by institutional participants.
When price stretches too far above or below VWAP, it often signals temporary imbalance between buying and selling pressure.
This tool highlights those moments using simple color zones and an optional statistical Z-Score filter for deeper precision.

In short: it’s a clean, minimal mean-reversion indicator showing when price is statistically “too far” from fair value.

1. Red zone → Price extended above VWAP → possible buyer exhaustion or short setup.
   
2. Green zone → Price extended below VWAP → possible seller exhaustion or long setup.
   
3. VWAP line → Acts as a dynamic fair-value anchor.
   

Concept:
VWAP combines both price and traded volume to define where most transactions occurred.
Deviations from it — measured either by a fixed distance (1%) or by Z-Score — can reveal overvaluation or undervaluation zones used by professional traders for contrarian setups.

How to use:

1. Apply the indicator to any intraday chart (1m–1h recommended).
   
2. Watch for background color shifts — red or green.
   
3. Optionally enable the Z-Score filter to focus only on statistically extreme deviations.
   
4. Combine with volume spikes, liquidity sweeps, or your own order-flow tools for confirmation.
   

Tip:
Best used as a visual overlay for detecting stretched markets and potential reversals.