VWAP Band Indicator Download for MetaTrader 4 - Free | Forex Indicator Download - MT4/MT5 Resources

The VWAP Bands indicator combines the Volume Weighted Average Price (VWAP) and price bands in MetaTrader 4.

The VWAP calculates the weighted average price of an asset trading volume and indicates the overall trend direction within a specified time frame.

One of the key features of this trading tool is the ability to adjust the time frame used to create bands.

VWAP frequency band indicator specification table

Indicator overview

The VWAP Bands are formed by adding or subtracting the standard deviation to the VWAP value. These bands define price ranges and indicate potential price movements. These bands include:

• Upper Band : Represents a resistance area where price is likely to react if price moves upward .
• Lower Band : This represents a support area where the price is likely to react if the price moves downward .

bullish trend conditions

Based on the following analysis of Binance Coin (BNB) on the 30-minute time frame, the price breaking above the moving average (the center line is light blue) indicates a tendency to oscillate within the upper lane.

The image below shows the upper bands effectively acting as resistance level .

Bearish trend conditions

Analyzing the GBP/USD currency pair based on the price chart, the price fell below the moving average (blue line) and moves downward on the 15-minute time frame.

The lower bands effectively act as support levels , consistently responding to price.

Indicator Settings

• Type of VWAP : Determine calculation based on different time ranges;
• Shift : adjust the VWAP position forward or backward;
• Price Type : price-based calculation type;
• The number of standard deviations in the first frequency band : the standard deviation value (1.0) of the first upper and lower bands;
• The number of standard deviations in the second frequency band : the standard deviation value of the second upper and lower bands (2.0);
• The number of standard deviations in the third frequency band : the standard deviation value of the third upper and lower bands (2.5);
• UTC time (true)/local time (false) : Determine the session time based on UTC;
• Asia Time Zone : Asian session;
• Start Asia Time : 7:00;
• End Asia Time : 17:00;
• London Time Zone : London session;
• Start London Time : 7:00;
• End London Time : 16:30;
• New York Time Zone : New York session;
• New York time morning start : 14:30;
• PM starts New York time : 19:30;
• End New York Time : 22:55;
• Label Color : Color of labels;
• Text Position : The position of the label text;
• Line Color : Determine the line color;
• Line Width : Determine the thickness of the line;
• Line Style : Line type;
• Line Back : adjust the line backward;
• Theme : Indicator theme.

Conclusion

The VWAP Bands Indicator is a powerful and key utility for identifying trends, support , and resistance levels and predicting future market movements in MetaTrader 4.

Price crossing a moving average (middle line) can be considered a trade signal entry . Additionally, upper and lower bands act as support and resistance zones. This trading tool can be used in a variety of markets, including cryptocurrency , forex market , stocks , and commodities .