VWAP with RSIVWAP with RSI Indicator
Overview
The VWAP with RSI Indicator is a powerful tool that combines the Volume Weighted Average Price (VWAP) with the Relative Strength Index (RSI) to provide traders with comprehensive insights into price trends, volume-weighted price levels, and market momentum. This dual-indicator setup enhances your trading strategy by offering a clearer understanding of the market conditions, potential entry and exit points, and trend reversals.
Key Features
VWAP (Volume Weighted Average Price):
Calculation: The VWAP is calculated using the high, low, and close prices, weighted by trading volume over a specified period.
Purpose: VWAP provides an average price that reflects the trading volume at different price levels, helping traders identify the true average price over a given period.
Visualization: The VWAP line is plotted in blue on the price chart, indicating the volume-weighted average price.
RSI (Relative Strength Index):
Calculation: RSI is based on the average gains and losses over a specified period (default is 14 periods) and ranges from 0 to 100.
Purpose: RSI measures the speed and change of price movements, identifying overbought or oversold conditions in the market.
Overbought/Oversold Levels:
Overbought: RSI above 70 (red line).
Oversold: RSI below 30 (green line).
Midline: RSI at 50 (gray dashed line).
Visualization: The RSI line changes color based on its value (purple for normal, red for overbought, green for oversold) and is plotted below the price chart.
Background Fill for RSI:
Overbought Area: Shaded red when RSI is above 70.
Oversold Area: Shaded green when RSI is below 30.
Bullish and Bearish Divergence Detection:
Bullish Divergence: Occurs when price forms a lower low, but RSI forms a higher low, indicating potential upward reversal.
Visualization: Bullish divergence points are marked with a green line and labeled "Bull."
Bearish Divergence: Occurs when price forms a higher high, but RSI forms a lower high, indicating potential downward reversal.
Visualization: Bearish divergence points are marked with a red line and labeled "Bear."
Alerts: Conditions for bullish and bearish divergences trigger alerts.
Settings
VWAP Settings:
hideonDWM: Option to hide VWAP on daily or higher timeframes.
src: Source for VWAP calculation (default is hlc3 - (high + low + close)/3).
offset: Offset for plotting the VWAP.
RSI Settings:
rsiLengthInput: Period length for RSI calculation (default is 14).
rsiSourceInput: Source for RSI calculation (default is close price).
maTypeInput: Type of moving average applied to RSI (options: SMA, EMA).
maLengthInput: Length of the moving average applied to RSI.
How to Use
Trend Identification: Use VWAP to identify the average price level and market trend. If the price is above VWAP, it suggests an uptrend, and if below, it suggests a downtrend.
Overbought/Oversold Conditions: Use RSI to identify potential reversal points. RSI above 70 indicates overbought conditions, and below 30 indicates oversold conditions.
Divergence: Look for bullish or bearish divergences between price and RSI to anticipate potential trend reversals.
Conclusion
By combining VWAP and RSI, this indicator provides a robust framework for analyzing market conditions, identifying trends, and making more informed trading decisions. Enhance your trading strategy today with the VWAP with RSI Indicator!
Rsivwap
Spot [Moto]Hello traders,
This indicator was primarily designed to show the dominating influence of the underlying spot asset while trading perpetual futures, specifically on Binance.
IMPORTANT: In order for this indicator to work properly/accurately you must be observing a Binance Perpetual future chart. The indicator detects which perpetual future symbol you're observing and changes its comparative metrics accordingly. If you're observing some other chart family, it will either be inaccurate or default to Binance spot BTC vs Binance perp BTC.
In my opinion spot price and metrics are more important to observe than derivatives. If I'm looking for entries or exits I want to know that spot is leading the way, and with evidential conviction. This indicator/signal is designed to be used in context and not to be the sole metrics observed. By comparing the spot chart metrics and the respective spot chart metrics, one is able to ascertain which candles are predominantly 'lead' or dominant via spot price action or conversely derivative lead. Generally, I've found, derivative lead moves have a highly likelihood of reverting
1) Spot engulfing - When spot has exerted control successfully on the current candlestick
This and other plot shapes contain plot shape sizing options and are optionally filtered via the cycled Rsi in the inputs
Smaller plot shapes (auto-sized) show when the candle is spot influenced, but not engulfing.
2) Spot Candle reversals - "E" and "e" plot shapes
These signals are sequential engulfing and opposing candles. "E" being when sequential engulfing candles print, "e" forms when spot candles are sequential, opposing, but not engulfing.
3) HTF Spot engulfing - Same as above but these are on a high time frame reference which have repainting on by default (optional in input).
These will indicate on lower time frame candles if that higher time frame is being spot influences + engulfing. These are hard set to daily, 3 day, and weekly references.
4) Bear / Bull Sequences: "Strong" / "Weak" plot shapes
These signals are looking for a Rsi mid-line (50) 'bounce' among the last four candles on the observed time frame. For example, this will give a signal when the rsi is above, below, below, and back above the 50 on the cycled Rsi.
5) "Prox" plot shapes - "P" and "Prox"
These plot shapes are purely based on Rsi and the confluence between two time frames. Signals occur when the low time frame and high time frame are near the 50 line of their respective Rsi but on opposing sides. There are two sets of these, comprising two different (optional) times frames each. Essentially these signals are to point out potential places of cascade in either direction. If however the market decides to "save" price, action can continue or perhaps violently push in the opposite direction. Consider them warnings to either follow or take advantage of. "P" plots indicate the lower time frame set, while "Prox" indicate the higher time frame signals. These signals can be optionally filtered by Rsi-Vwap directional bias, i.e above or below its "normal" range.
6) Simultaneous Rsi signals - "S"
These signals (optionally shown) print when two Rsi of two different time frame are simultaneously above their 50 mid-line but within a certain distance from the 50, with the candle in the preferred direction, and filtered via Rsi-Vwap. Time frame resolutions can be changes in the settings.
7) Reversion signals (Work in progress) - "R" plot shapes
These signals indicate via a set price difference when candles are of a certain size ($) and are derivative lead. Users can change the dollar change threshold in the settings.
8) Bar-coloring is provided on the more important signals
9) Alerts for almost all of the aforementioned metrics are included
Thanks,
DM for access
DRVS Sigs [intromoto]This indicator focuses on the RSI vwap, which is RSI, but with VWAP as a source, instead of the close. This focuses on its extremes, and movements away from extremes back to 'normal'.
The rsi vwap is used for directional bias in trends and potential areas for reversal.
"Allow repainting" option for when warranted.
There are two outputs for each level, essentially giving a warning signal for reversal and the larger plot for more likely reversal. Since this indicator is based off of strength, parabolic moves can blow through the warning and reversal signals, so be aware of major breaks in market structure.
Each plot set has a resolution filter to help reduce the noise and false signals. Also an option for 1st signal plot size. Signals share RSI-Vwap length.
DM for access.
Cheers!
MTF RSI VWAP Directional-Bias Barcolor [Intromoto]Hey traders.
This indicator displays one of five barcolors, whether the multi-timeframe VWAP RSI set , variable by user, are above or below the 50% midline of the standard normalized oscillator.
The standard resolutions I've set as default:
1 minute
3 minute
5 minute
15 minute
These can be changed, but this is designed for low time-frame and if increased you'll likely not get signals as useful.
RSI VWAP functions similarly to the standard RSI but takes volume-weighted price into the calculation. VwapRSI = rsi(vwap(close), length).
The barcoloring indicates as follows:
Red: Start downtrend - Long exit
vwapRSI1< 50, vwapRSI2 > 50, vwapRSI3 >50, vwapRSI4 >50
Dull Green: Start-mid uptrend - buy/long continuation
All vwapRSI above 50
Pink: Mid-end downtrend - sell/short continuation
All vwapRSI below 50
Bright Green: New Uptrend attempt - Long entry
vwapRSI1> 50, vwapRSI2 > 50, vwapRSI3 >50, vwapRSI4 >50
Black: Chop / weak trend
Null / Differing combination of above and below - no clear trade. Black often shows when momentum is low.
This should be used with other factors like market structure and in confluence with other indicators. Be aware and avoid barcolor divergence to the trend, especially considering use on lower time frames. i.e Green bars that start at a peak and travel downwards.
Focus should be given to candle border/wick color and the barcolor. i.e Down red candle with red or pink barcolor.
Feel free to experiment with the MTF function, as it likely differs across assets and time frames.
PM me for access.
