Session VWAPs [cryptalent]

This indicator provides a more granular and timely analysis of market structure compared to traditional daily Volume Weighted Average Price (VWAP). It splits the 24-hour trading day into four distinct, customizable sessions (T1, T2, T3, T4), calculating an independent Session VWAP and Standard Deviation Bands for each segment.

🌟 Key Features and Functionality
1. Segmented VWAP Calculation

• Purpose: To track the true Volume Weighted Average Price (Fair Value) specific to the participants and trading activities within different global market sessions (e.g., Asian, European, US sessions).
  

• Design: By default, the 24 hours (based on UTC time) are divided into T1 (00:00-06:00), T2 (06:00-12:00), T3 (12:00-20:00), and T4 (20:00-00:00).
  

• Mechanism: The VWAP calculation resets at the start of each designated session, offering a clearer, segment-specific view of market consensus and volume absorption.
  

2. Standard Deviation Bands

• Calculation: Each Session VWAP line is accompanied by upper and lower standard deviation bands.
  

• Control: The width of these bands is controlled by the user input "Band Multiplier" (default is 1.0, representing one standard deviation).
  

• Application: These bands measure the Volume-Weighted Volatility and define the expected "normal" trading range for the current session.
  

- Price within the bands suggests consolidation or a normal auction process.
- Price breaking out of the bands indicates strong directional momentum or an extreme/overbought/oversold condition for that specific session.


3. High Customization (User Inputs)

• Session Timing: All four session start and end times (in UTC) are customizable, allowing traders to align the indicator with specific market hours or individual trading strategies.
  

• Price Source: The source price used for the VWAP calculation is selectable (default is close).
  

💡 Trading Applications
1. Fair Value Identification: The VWAP line serves as the "Fair Value" or "Volume-Weighted Consensus Cost" for the active session.

• Price above VWAP: Buyers are in control during that session.
  

• Price below VWAP: Sellers are in control during that session.
  

2. Dynamic Support & Resistance: Both the VWAP and the Standard Deviation Bands often act as reliable dynamic support and resistance levels.

3. Volatility Assessment: The width of the bands reflects the volume-weighted volatility of the current session. Narrow bands suggest range-bound trading; wide bands imply strong directional activity.

4. Trend Strength: Sustained price action outside of the standard deviation bands is a key measure of the strength and commitment behind a current trend.