The VWAP OracleOverview
The VWAP Oracle is a sophisticated overlay indicator that elevates VWAP (Volume Weighted Average Price) from a simple benchmark to an intelligent oracle for intraday and swing decisions. It offers flexible anchoring (rolling MVWAP, weekly, monthly, yearly) with session options, augmented by heuristic "AI/ML" elements for trend forecasting, dynamic S/R identification, and mean-reversion pullback strategies. A comprehensive dashboard delivers at-a-glance intel on trends, roles, touch history, and trade stats, complemented by visual zones, entry shapes, and alerts. Tailored for active traders in equities, forex, or futures, this iteration refines state handling and role logic for seamless execution on Pine v6.
Core Mechanics
Built around robust VWAP computations with layered analytics:
VWAP Framework: Primary line via user-selected type—Rolling (volume-weighted over lookback bars for agility), or Anchored (resets on week/month/year changes). HLC3 source standard; regular or 24h sessions. Toggles for secondary lines (e.g., weekly in orange for context).
Heuristic Enhancements: ATR safeguards (min tick fallback) normalize zones (± sensitivity * ATR for touches) and distances (e.g., 3x for setups). Linear regression over lookback derives slope (ATR-scaled for cross-asset comparability), flagging strong trends (> threshold) with rising/falling confirmation and volume >20-bar SMA.
Role & Proximity Engine: Scans enabled VWAPs globally—assigns nearest as support (price above, higher value prioritized) or resistance (below, lower prioritized), e.g., "Weekly" if closest. Tracks main VWAP touches for strength tiers (Weak <3, Moderate 3-4, Strong 5-7, Proven ≥8).
Pullback Strategy: In validated trends (slope + price move + volume), distant deviations (> ATR multiple) trigger "awaiting" state. Confirms entries on fresh touches with directional candles (close > open for longs), setting ATR-based stops (1x offset from VWAP) and targets (2x extension). Manages to hit (success tally) or breach (reset); daily/anchor resets clear stats.
Outputs: Trend-colored VWAP (blue/red in strong regimes, gray in range), role-tinted zones (green/red fill), triangles for entries, labels for outcomes.
Why This Mashup Adds Value & Originality
Traditional VWAPs are passive lines; multi-anchor plots add clutter without synthesis. Here, the fusion of anchored/rolling VWAPs with regression-normalized "AI" slope (volatility-adjusted for invariance) and touch-based strength scoring forms a predictive layer—e.g., "Proven" supports from 8+ interactions signal higher-probability bounces than raw levels. Stateful pullback logic (distant setup → touch entry → managed exit) with explicit breach cancels differentiates it from basic deviation oscillators, while the 11-row dashboard (trend icons, nearest roles, live success %) consolidates what would take multiple indicators. Global role reassignment (no function var limits) ensures accuracy, creating a unified "oracle" for confluence without redundancy—ideal for evolving static VWAP into adaptive decision support.
How to Use
Configuration: Overlay on chart. VWAP: Pick Rolling for scalps (252-bar default); enable weeklies for bias. AI: ATR 14, sensitivity 0.5 (tighter for precision). Trade: 3x min distance setups, 2x/1x target/stop. Visuals: Dashboard top-right, zones on, signals toggled.
Dashboard Readout (semi-opaque black, size-adjustable):
Header/Type: "The VWAP Oracle" + active (e.g., "Rolling (MVWAP)").
Trend: 🔵/🔴 Strong or ⚪ Range—align trades accordingly.
Nearest S/R: "Main" support (green) for bounces; "Monthly" resistance (red) for fades.
Strength/Role: "Strong (5 touches)"; "Support" for current main bias.
Position: "🔄 Pullback Setup" flags opportunity; "⏳ Awaiting" pre-entry.
Success/Setup: "80% (4/5)"; 🟢 Long Active if running; volume "✅ Strong" validates.
Execution: Strong bull + distant alert → Long on green triangle touch → Trail to target label (✓) or stop (✗). Use zones for invalidation; alerts cover setups/hits. Suits 15m-4H on majors like NAS100.
Pro Tips: Backtest resets (daily intraday); tweak slope threshold (1.5) for noise.
Limitations & Disclaimer
Touches and entries confirm on close, introducing minor lag; rolling VWAP smooths but may trail sharp moves. Slope can oscillate in transitions—add manual filters. Stats reset periodically (e.g., daily), so sample sizes vary; "success" is backward-looking. No auto-sizing—cap risk at 1% equity. v6-optimized, but verify on live data. Not advice; simulate trades, as history ≠ future. Feedback welcome in comments.
Vwapweekly
PT VWAP MTFVersion 1.0 -
A Multi Timeframe - Daily, Weekly, Monthly VWAP. Also added a feature for previous day, Daily, Weekly, Monthly VWAP .
The main strategy to this indicator is the previous day vwaps. So we put in additional logic that allows us to visually see previous day, previous week and previous monthly vwap. This helps us get a gage of bullish vs bearish trends. For instance, if price is trading above both daily and previous daily vwaps, that signifies micro trend is bullish. If price is above daily vwap but below previous daily vwap, you can use the previous day vwap as a target for you long.
If you are interested in using our version of the MTF vwap, shoot us a message!
