[Top] VWAP + RSI Divergence Indicator

The “VWAP RSI Divergence Indicator” combines the Volume Weighted Average Price (VWAP), Relative Strength Index (RSI), divergence detection, and volume confirmation to identify high-probability trading opportunities.

How It Works:
The indicator integrates three powerful methodologies:
1. Volume Weighted Average Price (VWAP):

• VWAP calculates an average price weighted by volume, providing critical insights into the fair value of an asset within the trading session.
  
• Includes standard deviation bands (+1/-1 and +2/-2) around the VWAP, offering key levels of support, resistance, and price extremities.
  

2. Relative Strength Index (RSI):

• A momentum oscillator that measures the speed and change of recent price movements.
  
• RSI levels define overbought and oversold conditions, offering traders insight into potential reversal zones.
  

3. Divergence Detection:

• Identifies divergences between price action and RSI, signaling potential reversals or continuations.
  
• Detects both Regular Divergences (signifying potential reversals) and Hidden Divergences (indicating possible continuation of current trends).
  

Core Features:

• Real-Time Divergence Detection: Automatically detects and clearly labels Regular and Hidden Divergences with included tooltips to help you identify trading opportunities.
  
• VWAP and Standard Deviation Bands: Visualizes important dynamic support/resistance levels on the chart.
  
• RSI-Based Heat Map: Offers intuitive heat map coloring between standard deviation bands, colored dynamically according to RSI levels and divergence activity.
  
• Optional Volume-Based Candle Coloring: Enhances visual insight by coloring candles according to volume relative to a moving average.
  
• Customizable Alerts: Provides alerts for divergences and standard deviation band breaches, enabling traders to act swiftly.
  

What Makes It Unique:

• Integrated Divergence and VWAP Analysis: Unlike typical divergence indicators, this tool uniquely combines RSI divergence signals with VWAP analysis, enhancing signal reliability by considering both price momentum and volume-weighted price dynamics.
  
• Dynamic RSI Heat Map and Volume Coloring: Incorporates advanced visual customization through dynamic coloring based on RSI levels and divergences, as well as volume-based bar coloring, designed to allow you to understand detailed information at a glance.
  

How to Use:

• Identify Divergences: Watch for divergence labels indicating potential reversals (Regular Divergence) or continuations (Hidden Divergence).
  
• Monitor VWAP Bands: Use VWAP bands as dynamic support/resistance levels, particularly observing price reactions at +1/-1 and +2/-2 standard deviation extremes.
  
• Volume Confirmation: Combine divergence signals with volume-colored bars to confirm strength or weakness behind potential moves.
  
• Leverage Alerts: Enable customizable alerts to stay promptly informed about key divergences and price extremes, ensuring timely decision-making.