VWAP indicator

MQL5 Indicators

Specification

The VWAP (Volume Weighted Average Price) is a standard trading benchmark used by traders that provides the average price a security has traded at throughout the day, based on both volume and price. What you're describing sounds like a VWAP with multiple standard deviation bands.

Here's a high-level overview of how you might implement this in MQL5:

1. **Initialization:**
   - Define parameters for the number of bands and the spacing (in terms of standard deviations) between each band.
   - Define colors for the bands.

2. **Calculation of VWAP:**
   - The VWAP is calculated by adding up the dollars traded for every transaction (price multiplied by the number of shares traded) and then dividing by the total shares traded for the day.

3. **Calculation of Bands:**
   - The bands can be calculated using standard deviations. The first band above VWAP would be \( VWAP + (\text{standard deviation} * \text{spacing}) \), the second band would be \( VWAP + (2 \times \text{standard deviation} * \text{spacing}) \), and so on.
   - The bands below the VWAP would be calculated similarly, just subtracting the standard deviations.

4. **Display:**
   - Display the VWAP and its bands on the chart.
   - Display the percentage change for each band relative to the VWAP.

5. **Alerts:**
   - Generate alerts when the price touches any of the bands.

6. **Styling:**
   - Color the upper bands red and the lower bands green.

This is a high-level guide. Writing a full-fledged MQL5 indicator would require detailed knowledge of MQL5 programming.

https://www.mql5.com/en/market/product/76639?source=External  similar to this.


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