The VWAP Bands Metatrader 5 Forex indicator is a quite similar to the Bollinger bands, but it deploys volume weighted average as the core value of the bands.
There is an option of using the tick volume or real volume for calculation when using the VWAP Bands Metatrader 5 custom forex indicator, especially when the forex broker displays symbol alongside real volume.
Similarly, you can decide to have deviations calculated with the sample correction or not.
Each of the bands of the VWAP Bands MT5 fx indicator can be turned off or on.
If the deviation multiplier for any of the bands is set to ≤ 0 then it implies such a band is not going to be calculated.
Download the “vwap_bands.ex5” MT5 indicator
The EUR/JPY H4 chart below displays the VWAP Bands Metatrader 5 forex indicator in action
Basic Trading Signals
Buy Signal: Go long when the bands of the vwap_bands Metatrader 5 Forex indicator widens, while price trades along the lower sandy brown outer lines of the indicator.
Sell Signal: Go short when the bands of the vwap_bands Metatrader 5 FX indicator widens, while price trades along the upper lime green outer lines of the indicator.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the lines of the vwap_bands MT5 forex indicator constricts.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the lines of the vwap_bands MT5 forex indicator contracts.
Tips: During market sessions, the lines of the vwap_bands Metatrader 5 forex indicator is seen to contract or widen, offering traders clues as when volatility is less or way up respectively.
Download the “vwap_bands.ex5” Metatrader 5 indicator
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart pattern indicator
Customization options: Variable (Volume weighted average period, Price, Use real volume?, Deviation with sample correction?, First band(s) deviation, Second band(s) deviation, Third band(s) deviation), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the vwap_bands.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)