Most traders use VWAP as a session tool that resets every day. Edo VWAP Core takes a different angle: it anchors the calculation to the start of the current week and the current month, so the line represents the average price every participant has paid since the period opened — the equilibrium between buyers and sellers, stable enough to trade swings on the daily and 4-hour charts.
Two anchored VWAPs and their deviation bands
The indicator plots a weekly VWAP in blue and a monthly VWAP in orange, each accumulated from the hlc3 price weighted by volume and reset at the start of its period. Around every VWAP it draws volume-weighted standard-deviation bands at ±1σ and ±2σ. The band between +1σ and +2σ is shaded warm to mark the premium zone; the band between −1σ and −2σ is shaded cool to mark the discount zone. Because the bands are derived from the dispersion of the period itself, they widen in volatile weeks and tighten in calm ones, turning the VWAP from a single line into a measurable scale of value.
The five premium / discount states
Every bar is classified against the reference VWAP — weekly by default — into one of five states: Premium Extreme above +2σ, Premium between +1σ and +2σ, Neutral VWAP within ±1σ, Discount between −1σ and −2σ, and Discount Extreme below −2σ. Red marks the expensive zone and green the cheap one, following the classic premium / discount logic. The state is not a buy or sell signal: it is context that tells you whether price is trading rich or cheap relative to what the market has actually paid, so you can position on the right side of fair value.
The panel, σ distance and the alerts
A corner panel reports the active state with a consecutive-bar counter, the σ distance — a volatility-normalized z-score of how far the close sits from the reference VWAP — and the exact level of every weekly and monthly VWAP and band. The fill between price and the reference VWAP is colored by state for an instant read. Nine native alerts cover each state change, the two VWAP crosses and the new weekly and monthly anchors; set them to Once Per Bar Close to avoid intrabar noise.