Smoothed VWAP Bands + EMAs

9 часов назад

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.

8 часов назад

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