Mean Reversion VWAP For ThinkOrSwim

[Abutterfly]

Don't know if anyone posted this version of the VWAP in watchlist. My version takes the difference and gets the percentage of ATR at any moment. So, if Percentage is over or under 30% ATR, we should bet the reversal , or they call this mean reversion.........

# ATR
def atrLength = 14;
def atr = Average(TrueRange(high, close, low), atrLength);

plot vwap1 = vwap();

AssignBackgroundColor(if close > vwap1 then Color.GREEN else if close < vwap1 then Color.RED else Color.dark_gray);
def vwapP = round((close - vwap1)/ ATR *100,1);
addlabel( yes, vwapP+" %" , if close > vwap then color.black else color.white);

 

[antwerks]

Very cool as always!! I tweaked it a tad adding some other variables to the buy and sells to catch them earlier in the initial move - I added buy arrows when the (5 EMA crosses above VWAP - optional), EMA slope changes from negative to positive, EMA’s rate of change is increasing, volume is above average volume.
I added sell arrows when the (5 EMA crosses below VWAP- optional), EMA slope changes from positive to negative, EMA’s rate of change is decreasing and volume is below average.
https://tos.mx/!AkVU3wun

Works on any time frame, you can adjust length, volume period, or sensitivity of slope/ROC as needed.
The BuyArrow and SellArrow plots only show when all enhanced conditions align.

 

[hboogie]

Very cool as always!! I tweaked it a tad adding some other variables to the buy and sells to catch them earlier in the initial move - I added buy arrows when the (5 EMA crosses above VWAP - optional), EMA slope changes from negative to positive, EMA’s rate of change is increasing, volume is above average volume.
I added sell arrows when the (5 EMA crosses below VWAP- optional), EMA slope changes from positive to negative, EMA’s rate of change is decreasing and volume is below average.
https://tos.mx/!AkVU3wun

Works on any time frame, you can adjust length, volume period, or sensitivity of slope/ROC as needed.
The BuyArrow and SellArrow plots only show when all enhanced conditions align.

View attachment 25361

You rock ant ! This time no labels? lol. Wondering if you have those impliedmove labels shared somewhere too? Thanks as always!

Also thinking about adding your alphatrends 5sma as a dropdown option here to see the quality of the signals.

 

[antwerks]

You rock ant ! This time no labels? lol. Wondering if you have those impliedmove labels shared somewhere too? Thanks as always!

Also thinking about adding your alphatrends 5sma as a dropdown option here to see the quality of the signals.

this one by SqueezeMetrics? https://tos.mx/!cBJxzdEP

 

[antwerks]

You rock ant ! This time no labels? lol. Wondering if you have those impliedmove labels shared somewhere too? Thanks as always!

Also thinking about adding your alphatrends 5sma as a dropdown option here to see the quality of the signals.

I made it thermal identifying if it is a bear stack or bull stack or mixed, and added labels and added which average is where in the current order .
https://tos.mx/!4WXwIFjJ

In the chart below the 100 MA is lagging or lower than the rest --
Summary: When MA100 Lags

Signal	Meaning
MA100 < Shorter MAs	Long-term trend is still catching up
Short MAs turning up	Short-term momentum increasing
MA100 flat/down	Market may be in early reversal or sideways
MA100 starting to curl	Long-term trend may be shifting upward

If you’re using this thermal-style MA stack, a bullish stack with MA100 lagging is like a "warming signal" — it tells you that momentum is building, and a larger trend shift might be on the horizon, but it’s not fully confirmed yet by long-term participants.

 

[antwerks]

You rock ant ! This time no labels? lol. Wondering if you have those impliedmove labels shared somewhere too? Thanks as always!

Also thinking about adding your alphatrends 5sma as a dropdown option here to see the quality of the signals.

Here is an example of how to use this new info of which MA is leading or lagging with a chart example at the end:
Given Moving Averages:

MA Length	Value
MA9	107.24
MA21	107.16 Lagging
MA34	107.20
MA50	107.25
MA100	107.72 Highest

What This Configuration Suggests:

1. MA21 Lagging Implies a Mid-Term Pullback or Slowdown

• The MA21 being below both MA9 and MA34 suggests:
  • There was a recent price pullback or sideways action in the last few weeks (mid-term).
  • The short-term price (MA9) is recovering faster than the 21-period average.
  • The 21-period average is catching up, but not there yet.

Interpretation: Momentum is returning, but the mid-term trend hasn't fully flipped bullish yet.

2. MA100 Still on Top = Long-Term Bearish Overhang

• Since MA100 is at 107.72, and all others are below:
  • The long-term trend is still bearish (or not yet bullish).
  • This suggests that prices were lower recently but still underperforming over the last ~100 bars.

Interpretation: You're likely in an early-stage recovery, but no confirmed full-trend reversal yet.

3. Slight MA Spread = Consolidation or Coiling

• All MAs are clustered tightly between 107.16 and 107.25 (except for MA100):
  • This usually happens during low volatility or compression zones.
  • Price may be preparing for a breakout — direction to be confirmed by price and volume.

Interpretation: Market is coiling, and MA21 lagging slightly may just be a delay in catching up due to past dip.

Summary:

Signal	Inference
MA21 below MA9, MA34, MA50	Mid-term lag → still reflecting a past dip
MA9 > MA21	Short-term bounce/recovery underway
MA100 above all	Long-term trend is still downward or flattening
MAs tightly grouped	Compression → breakout likely approaching

Actionable Use (if trading):

• If price breaks above MA100 with rising volume → stronger bullish confirmation.
• If MAs begin to align in order (9 > 21 > 34 > 50 > 100) → that’s a bullish stack.
• If MA21 begins rising and crosses above MA34 or MA50 → look for follow-through strength.

 

[antwerks]

You rock ant ! This time no labels? lol. Wondering if you have those impliedmove labels shared somewhere too? Thanks as always!

Also thinking about adding your alphatrends 5sma as a dropdown option here to see the quality of the signals.

Here is a bull stacked scan https://tos.mx/!iZKCMn3X

 

[hboogie]

Here is a bull stacked scan https://tos.mx/!iZKCMn3X
View attachment 25373

Can’t wait to try all of these tomorrow. Thanks for all you share!