Order-Flow Proxy (VWAP Deviation Zones)

This indicator visualizes price deviation from the session VWAP to identify institutional bias, over-extension, and potential reversal zones. It highlights when price strays too far from fair value due to order-flow imbalance.

Concept

1. VWAP as Fair Value: Institutional benchmark for premium/discount zones.
   
2. Positive Deviation (Top Zone): Price well above VWAP → potential overbought/short.
   
3. Negative Deviation (Bottom Zone): Price well below VWAP → potential oversold/long.
   
4. Z-Score Filter (optional): Shows only statistically extreme deviations.
   
5. Colors: 🔴 top (above VWAP), 🟢 bottom (below VWAP).
   

Usage Tips

• Best on intraday (1m–1h) for mean-reversion/fade setups.
  
• Combine with volume climax, liquidity sweeps, or displacement for confirmation.
  
• Use alerts to catch VWAP over-extensions in real time.
  

Technical Notes

• Deviation = (Price − VWAP) ÷ VWAP.
  
• Z-score uses rolling SMA and standard deviation on deviation series.
  
• Works with TradingView session VWAP on liquid markets.
  

License
Apache 2.0 — © 2025 tkarolak — Free to use with attribution; no endorsement implied.