VWAP Bands is a trading indicator that plots the volume-weighted average price (VWAP) anchored to a user-defined session, resetting daily by default. It includes three tiers of statistical deviation bands (1σ, 2σ, and 3σ) above and below the VWAP, providing a fair-value framework commonly used by institutional equity and futures traders, adapted here for retail forex, indices, and CFD markets.

The indicator calculates each bar’s typical price (average of high, low, and close) weighted by volume from the session start, deriving the running VWAP and standard deviation. The white VWAP line represents the session’s fair value, with price above favoring buyers and below favoring sellers. The inner bands mark normal trading ranges, while outer bands indicate statistically stretched price zones that often precede reversions or strong trend continuations.

Visual features include a gradient cloud shading between price and the first band, changing color based on price position relative to VWAP, and triangle markers signaling price rejection beyond the second deviation band, suggesting potential mean reversion. A corner panel displays live metrics such as distance from VWAP in pips and percentage, plus zone labels like "OVEREXTENDED ABOVE (2-3σ)."

Key settings allow customization of session reset time, band multipliers, cloud and marker toggles, and colors. VWAP Bands is suited for intraday and scalping traders seeking an objective, statistically grounded measure of fair value and dynamic support/resistance.