Market Cipher B/
VWAP
TL;DR
VWAP in Market Cipher B is an MCB-specific oscillator implementation of the Volume-Weighted Average Price concept — displayed as the inner, more vivid baseline area overlaid on top of Money Flow. LiquidMind displays VWAP in khaki on both sides of zero for visual consistency. Unlike the standard VWAP chart overlay, this MCB variant shows whether current price action is trading at a premium or discount relative to the volume-weighted fair value as an oscillator around zero.
How It Works
- 1
VWAP is calculated as the cumulative sum of (price × volume) divided by the cumulative volume — it represents the 'fair value' price from a volume perspective.
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Price trading above VWAP indicates buyers are paying a premium — the asset is in institutional demand.
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Price trading below VWAP indicates sellers are accepting a discount — the asset is under distribution or in panic selling.
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In Market Cipher B, VWAP is plotted as a baseline series around zero and shown in khaki for both positive and negative deviations.
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Sharp VWAP spikes (sudden large deviations from zero) often coincide with high-volume manipulation — liquidity sweeps or institutional accumulation events.
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When price returns to the VWAP zero line after an extreme deviation, it often creates a high-probability mean-reversion setup.
LiquidMind uses VWAP positioning to determine whether a POI entry is against or aligned with institutional order flow. A bullish POI entry (e.g., EQL sweep) has higher conviction when VWAP is negative (khaki region) — meaning price is at a discount relative to volume-weighted value. The system also monitors for VWAP zero-line crossovers as early trend confirmation after POI entries are triggered. VWAP is weighted most heavily in the 1H–4H timeframe stack.