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Adding Standard Deviation Bands to Indicators
We have recieved the following support question:
How to add standard deviation bands to VWAP?
In NeoTicker there are two ways to add these bands: 1, use indicator on indicator without writing a line of code. 2, use formula indicator to produce calculation result. These two methods can be apply to any existing indicators.
Indicator on Indicator
The following is a step by step guide on how to add band to volume weighted average price (VWAP).
1, add VWAP indicator on a time chart.
2, add standard deviation indicator next.
3, after standard deviation is added, right click on VWAP and select Add Indicator.
4, select Addition as indicator to add thend at Add Indicator windows, Links tab (figure 2) select VWAP as link 1 and standard deviation as link 2.
Resulting of adding standard deviation and VWAP will appear in a new pane, use chart manager to move addition plot into the same pane as VWAP and data series. This will product an upper band for VWAP.
Repeat step 3 and 4 using Substraction indicator, then again move resulting indicator plot into data pane.
At chart manager hide standard deviation plot and remove all the extra panes.
5, add 2, 3 and N deviation bands using Formula 2 indicator, with link 1 set to VWAP and link 2 set to standard deviation. Use following formula in plot 1 parameter for upper and lower band 2.
Upper band 2: data1+2*data2
Lower band 2: data1-2*data2
Repeat this step for upper and lower band 3 and all other number.
See below for export group pacakge.
Formula Indicator
Formula indicator approach requires a little programming.
Create a new indicator and at indicator setup windows set plot to 5.
I use indicator wizard within script editor to fill in syntax for VWAP and standard deviation.
There are only seven lines of code required to plot four standard deviation bands on VWAP, replace VWAP with any indicator in formula code and the indicator will give other indicator standard deviation bands.
Download of VWAP band indicator is available below.
Downloads