![vwap thinkorswim vwap thinkorswim](https://i2.wp.com/easycators.com/wp-content/uploads/multiple-time-frame-stochastics-indicator-for-thinkorswim.png)
This package gives you all the tools you need to find, sort, evaluate, and consistently trade VWAP mean reversion strategy based on Z-distance from VWAP. It also includes a backtest-enabled strategy script to plot a theoretical profit & loss on any instrument you choose. This package includes the indicator with customizable alerts, overbought/oversold levels, colors, and styles, as well as a custom watchlist quote column displaying each symbol’s Z-score distance from VWAP, and a custom scan to find overbought and oversold stocks based on their Z-score distance from VWAP. Also, it’s based on statistical tendencies that can be tested and verified, so it just checks a lot of boxes for me.
![vwap thinkorswim vwap thinkorswim](https://i0.wp.com/easycators.com/wp-content/uploads/Z-distance-from-vwap-mean-reversion-strategy-for-thinkorswim-ES.png)
I like this indicator because it is very simple to understand, seems almost ridiculously reliable on some symbols, and is super easy to build a trading system around. Likewise, when price gets too far above VWAP, the indicator lights up and sends you an overbought alert, signaling that it may be an ideal time to sell or go short. So when price gets too far below VWAP - 2 standard deviations by default - the indicator lights up and sends you an oversold alert, signaling that it may be a great time to buy. The basic concept is that it’s an oscillator denominated in standard deviations from VWAP (volume weighted average price), and the graph plots how many deviations away from VWAP a symbol is currently trading at. The Z-Distance from VWAP is an indicator I’ve become very interested in with my own trading.
#Vwap thinkorswim full#