Smoothed VWAP Bands + EMAs

17 nov

Smoothed VWAP bands
With my script, you take the raw standard deviation and apply an EMA (exponential moving
Advantages:
1. Less noise:
* The bands don’t jump around with every tiny price spike.
* Makes it easier to judge real price extremes.
2. Better zone visualization:
* Inner and outer bands are smoother and more visually “stable.”
* Easier to see meaningful trends, support/resistance, and breakout zones.
3. Fewer fakeouts:
* Traders can filter out small false signals because smoothed bands only move when volatility actually changes.
4. Dynamic to volatility:
* EMA smoothing keeps the bands adaptive:
* In quiet periods, bands tighten.
* In volatile periods, bands expand.
* But it avoids extreme jitter caused by every micro-move.

Safe Zone Rules
1. Long entries (green zone):
* Price above VWAP (trend bullish).
* Price inside inner band ±1σ (not touching outer extremes).
* Optional: candle close confirmation (price fully above inner band).
2. Short entries (red zone):
* Price below VWAP (trend bearish).
* Price inside inner band ±1σ.
* Optional: candle close confirmation.
3. Outer bands (±2σ):
* Considered overextended zones → avoid entries to reduce fakeouts.
4. Visual cues:
* Safe zones shaded lightly green/red inside inner band.
* Outer bands remain unshaded (for context).


Here’s a cheat sheet for trading the Smoothed VWAP Bands + EMAs that shows safe entry zones and trend alignment clearly.

Smoothed VWAP Bands + EMAs Cheat Sheet

Price Action Relative to Bands & EMAs

+2σ (Outer Upper Band)
----------------
Extreme volatility zone
Avoid entries here

+1σ (Inner Upper Band)
----------------
Safe zone limit for longs
Consider profit taking here

VWAP Line (Green = Bullish, Red = Bearish)
==================
Core trend indicator
Only trade in VWAP trend direction

-1σ (Inner Lower Band)
----------------
Safe zone limit for shorts
Good for entries in trend direction

-2σ (Outer Lower Band)
----------------
Extreme volatility zone
Avoid entries here

1️⃣ Trend Direction with VWAP & EMAs
* VWAP → shows the overall session trend.
* Price above VWAP → bullish
* Price below VWAP → bearish
* EMA 5 (blue) → short-term momentum
* EMA 20 (orange) → medium-term trend
Rule: Only take trades in the direction of the trend:
* Long trades → price > VWAP and EMA 5 > EMA 20
* Short trades → price < VWAP and EMA 5 < EMA 20
This prevents chasing trades against the trend and reduces fakeouts.

2️⃣ Entry Zones Using Smoothed VWAP Bands
* Inner band (±1σ) → “safe entry zone”
* Outer band (±2σ) → volatility extremes → avoid entries here
Rule: Enter longs inside the inner band above VWAP and shorts inside the inner band below VWAP.

Best used on intraday timeframes.
15, 5, 2, 1 min charts.

17 nov

Notas de prensa

Change name

19 nov

Notas de prensa

✅ Key updates:
EMA 1 and EMA 2 each have their own independent price source dropdown (ema1PriceSource and ema2PriceSource).
The calculations now use price1 for EMA 1 and price2 for EMA 2.

19 nov

Notas de prensa

✅ Key updates:
EMA 1 and EMA 2 each have their own independent price source dropdown (ema1PriceSource and ema2PriceSource).
The calculations now use price1 for EMA 1 and price2 for EMA 2.

19 nov

Notas de prensa

What’s new:
EMA 3 added with its own length (ema3Length) and independent price source (ema3PriceSource).
EMA 3 uses price3 variable to calculate the EMA.
Plotted as green line by default.

19 nov

Notas de prensa

✅ New Features for CCI:
cciPriceSource input lets you choose Open, High, Low, or Close for the CCI calculation.
Bars still color green if CCI > 0 and red if CCI < 0, customizable with cciUpColor and cciDownColor.
Toggle enableCCIcolor remains functional.
This makes the indicator fully flexible: 3 EMAs with independent price sources, VWAP bands, and fully customizable CCI bar coloring.

20 nov

Notas de prensa

✔️ What’s added:
Three toggles:
MA 1 Type: EMA / SMA
MA 2 Type: EMA / SMA
MA 3 Type: EMA / SMA
Each MA now dynamically switches between EMA or SMA.

20 nov

Notas de prensa

General house keeping update

20 nov

Notas de prensa

Added color on bars for CCI above zero/below
Added color on bars for VWAP above/below