The VWAP (Volume Weight Average Price) indicator of VolBook allows you to display the VWAP, or the volume-weighted average price of trades made during a certain time period and their standard deviations.

These last represent a way to measure volatility prices against the volume-weighted average value. Standard deviations are bands that are plotted above and below the VWAP to identify the average distance of prices from the mean value. Each standard deviation indicates a "band" of the price range, providing traders with an'idea of how far the price is deviating from the VWAP by going to contextualize Premium and Discount zones. 

In particular:

• First Standard Deviation (+1/-1): Shows the level of volatility main and represents the area where price tends to stay most of the time.
• Second Standard Deviation (+2/-2): Indicates an'area of greater volatility and signals potential significant price changes.
• Third Standard Deviation (+3/-3): Represents rarer events, signaling extreme price movements.
  The standard deviations of the VWAP are useful for identifying overbought and oversold zones and helping traders make entry or exit decisions based on the price deviation from the VWAP.

INDEX

• Settings-of-Use
• General
  • Period-Mode
  • Period-value
  • Envelope mode
• Display-settings
  • Line-color
  • Line Thickness
  • Band Width
    • Band Style
• First/Second/Third-band

Settings-of-Use

To apply the VWAP indicator to the chart, click on the Indicators function, and select from the VWAP list. Alternatively, enable VWAP directly from the Toolbar at bottom of the graph.

Clicking on the indicator settings icon will open its configuration window, within which you can make several choices regarding the functionality of the indicator itself. 

General

Mode-period

Defines the reference period on which to calculate the VWAP, specifically you can choose between Day, Minutes, Seconds or Orders.

Period value

Defines the value of the period chosen in the previous step.

Envelope mode

Defines how bands are calculated, being able to choose whether to base them on the Standard deviation or on the percentage change in price.

Display-settings

Line-color

Defines the color of the VWAP.

Line thickness

Defines the line thickness of the VWAP.

Bandwidth

Defines the thickness of the bands.

Band style

Defines the style of the band line.

First/Second/Third-band

Enable bands and define their standard deviation parameter and color.

There è also the possibility of applying multiple VWAP indicators, for example in the following image in addition to the daily VWAP in yellow, a 30-minute VWAP in blue has been applied.