Description
The TriVWAP Indicator: An Advanced Approach to Technical Analysis
The TriVWAP (Triple Volume Weighted Average Price) indicator is an interesting advancement in the field of technical analysis. Developed for the cTrader trading platform, this indicator combines three VWAPs (Volume Weighted Average Prices) to offer a more nuanced perspective on price and volume movements in financial markets. This article explores the features and benefits of this innovative indicator in detail.
What is VWAP?
The VWAP (Volume Weighted Average Price) is a measure used to evaluate the average price of an asset weighted by its trading volume. Unlike a simple average of prices, the VWAP gives more importance to periods with higher trading volumes, providing a more accurate view of market dynamics.
Introduction to the TriVWAP Indicator
The TriVWAP is designed to overlay on the price chart, offering an intuitive visualization of market data. It consists of three main components:
- Main VWAP (Result): Calculates the VWAP over a defined period (default is 7 periods).
- Signal VWAP (Signal): Applies the VWAP on the data series of the main VWAP, with another defined period.
- Signal VWAP 2 (Signal 2): Applies the VWAP on the data series of the Signal VWAP, with yet another defined period.
Code Analysis
Parameters:
PeriodVWAP: Period for the main VWAP calculation.PeriodSignal1: Period for the first Signal VWAP calculation.PeriodSignal2: Period for the second Signal VWAP calculation.
Calculate Method:
- This method is called at each new index of the data series.
Resultis calculated using theCalculateVWAPmethod on typical prices and tick volumes.Signalis calculated by applying the VWAP on theResultseries.Signal2is calculated by applying the VWAP on theSignalseries.
CalculateVWAP Method:
- This method takes as input a price series, a volume series, an index, and a period.
- It calculates the VWAP by accumulating the products of prices and volumes over the specified period and then dividing by the sum of the volumes.
Advantages of the TriVWAP
- Nuanced Perspective: By using three levels of VWAP, this indicator can help identify trends and potential reversals with greater accuracy.
- Adaptability: The periods for each VWAP level can be adjusted according to market conditions and user preferences.
- Ease of Use: Overlaid on the price chart, it is easy to interpret for traders of all levels.
Conclusion
The TriVWAP indicator is a powerful tool for traders looking to incorporate volume-weighted analysis into their trading strategy. By combining multiple levels of VWAP, it offers a detailed view of price trends and volume movements, facilitating more informed trading decisions. Its flexibility and accuracy make it a valuable addition to any technical trader's arsenal.
Enjoy for Free =)
Previous account here : https://ctrader.com/users/profile/70920
Contact telegram : https://t.me/nimi012
using cAlgo.API;
using cAlgo.API.Indicators;
namespace cAlgo
{
[Indicator(IsOverlay = true, AccessRights = AccessRights.None)]
public class TriVWAP : Indicator
{
[Parameter("Period VWAP", DefaultValue = 7)]
public int PeriodVWAP { get; set; }
[Parameter("Period Signal", DefaultValue = 7)]
public int PeriodSignal1 { get; set; }
[Parameter("Period Signal 2", DefaultValue = 7)]
public int PeriodSignal2 { get; set; }
[Output("Result", LineColor = "Lime", PlotType = PlotType.Line)]
public IndicatorDataSeries Result { get; set; }
[Output("Signal", LineColor = "Gold", PlotType = PlotType.Line)]
public IndicatorDataSeries Signal { get; set; }
[Output("Signal 2", LineColor = "Red", PlotType = PlotType.Line)]
public IndicatorDataSeries Signal2 { get; set; }
public override void Calculate(int index)
{
Result[index] = CalculateVWAP(Bars.TypicalPrices, Bars.TickVolumes, index, PeriodVWAP);
Signal[index] = CalculateVWAP(Result, Bars.TickVolumes, index, PeriodSignal1);
Signal2[index] = CalculateVWAP(Signal, Bars.TickVolumes, index, PeriodSignal2);
}
public double CalculateVWAP(DataSeries price, DataSeries volume, int index, int period)
{
double sumPV = 0.0;
double sumVolume = 0.0;
for (int i = 0; i <= period; i++)
{
sumPV += price[index - i] * volume[index - i];
sumVolume += volume[index - i];
}
return sumPV / sumVolume;
}
}
}
YesOrNot2
Joined on 17.05.2024
- Distribution: Free
- Language: C#
- Trading platform: cTrader Automate
- File name: Tri VWAP.algo
- Rating: 5
- Installs: 336
- Modified: 04/08/2024 16:46
Nice work