The XBP VWAP (Volume Weighted Average Price) indicator plots the main VWAP level, calculated since the beginning of the natural day, and 6 standard deviation levels, 3 upper and 3 lower. These levels often act as support/resistance levels.

XBP VWAP Description

The indicator resets itself automatically everyday at midnight.


TradeStation has a good explanation about the uses of VWAP here: http://www.tradestation.com/education/labs/analysis-concepts/using-volume-weighted-average-price

The Standard Deviation levels act as dynamic intraday support and resistance levels. These levels are easier to predict and understand than Fibonacci levels, as they are not dependent on any price points but they automatically adjust as the day day advances.

You can use these levels as attraction and repulsion levels. For example, if price crosses above the VWAP level, you can expect the price to reach the first standard deviation level. Same when the price finds resistance crossing a standard deviation level, you can expect the price to retrace to the level immediately below it, at least.

You can subscribe this indicator to your TradeStation by clicking the button below:

1 Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s