Tactical Deviation

Tactical Deviation - Multi-Timeframe VWAP Deviation Analysis

OVERVIEW
Tactical Deviation combines Volume-Weighted Average Price (VWAP) with statistical standard deviation analysis across multiple timeframes (daily, weekly, monthly) to identify potential mean reversion opportunities and extreme price conditions.

WHAT MAKES THIS ORIGINAL
This script provides a unified multi-timeframe VWAP deviation system that:
- Calculates volume-weighted standard deviation (not simple price movements)
- Simultaneously tracks deviation levels across daily, weekly, and monthly VWAPs
- Offers dynamic volatility adjustment (ATR-based multiplier scaling)
- Visualizes deviation zones with color-coded clouds (1σ-2σ, 2σ-3σ, 3σ+)
- Integrates pivot detection, volume confirmation, and optional RSI filtering

HOW IT WORKS
The indicator calculates VWAP and standard deviation for each timeframe using volume-weighted statistics:
1. VWAP = Sum(Price × Volume) / Sum(Volume) for each period
2. Standard Deviation = √[Sum(Price² × Volume) / Sum(Volume) - VWAP²]
3. Creates ±1σ, ±2σ, and ±3σ bands around each VWAP
4. Tracks current price deviation in standard deviations from each VWAP

Deviation levels:
- Level 0: Within ±1σ (normal range)
- Level 1: Between ±1σ and ±2σ (moderate deviation)
- Level 2: Between ±2σ and ±3σ (significant deviation)
- Level 3: Beyond ±3σ (extreme deviation)

Optional dynamic multipliers adjust band width based on ATR volatility - wider bands in volatile markets, tighter in calm markets.

HOW TO USE
Basic Usage:
- Enable desired VWAP timeframes (Daily/Weekly/Monthly)
- Monitor the info table showing current deviation levels
- Look for price reaching ±2σ or ±3σ zones (marked with ⚠️ and 🔥 icons)

Visual Elements:
- VWAP lines: Green (Daily), Purple (Weekly), White (Monthly)
- Colored clouds: Show deviation zones (darker = more extreme)
- Info table: Displays current deviation in standard deviations (σ)

Trading Applications:
Mean Reversion: Price reaching ±2σ/±3σ zones may indicate overextension. Look for reversal signals (pivot bounces, volume spikes) with VWAP as mean reversion target.

Trend Analysis: Consistent price above/below VWAP with low deviation suggests trend strength. Extreme deviations may indicate trend exhaustion.

Multi-Timeframe Confluence: Compare deviation levels across timeframes. Confluence of extremes on multiple VWAPs may indicate stronger setups.

Signal System (Optional):
Signals appear when price reaches extreme deviations (≥2σ) with optional confirmations:
- Volume spike (1.5× average)
- Pivot reversal (bounce off pivot low/high)
- RSI filter (oversold/overbought)
- Multi-VWAP confluence

IMPORTANT: Signals are informational only. Always use proper risk management, stop losses, and confirm with your own analysis. Past performance does not guarantee future results.

SETTINGS RECOMMENDATIONS
Day Trading: Enable Daily VWAP, show ±1σ bands, use dynamic multipliers, enable pivot reversal.

Swing Trading: Enable Daily + Weekly VWAPs, use confluence (2+ VWAPs), enable volume confirmation and RSI filter.

Position Trading: Enable all three VWAPs, use confluence requirement, focus on ±2σ/±3σ zones, enable all filters.

TECHNICAL DETAILS
- VWAP resets at period start (midnight daily, Sunday weekly, 1st of month monthly)
- Standard deviation uses volume-weighted statistics
- Pivot detection: Configurable lookback (default 5 bars)
- Volume analysis: Compares to SMA (default 20-period)
- RSI: Standard 14-period calculation

DISCLAIMER
This indicator is a tool for analysis and should not be used as the sole basis for trading decisions. VWAP and standard deviation describe past price behavior. Market conditions change, and historical patterns may not repeat. No indicator can predict future movements with certainty. Always use proper risk management. Past performance does not guarantee future results. Educational purposes only.