Regime-Aware VWAP
Understand the market's current condition — trending, reversing, or consolidating
Regime-Aware VWAP tells you what the market is doing right now. Is it trending with real strength? Is it about to reverse? Or is it just sitting still? It answers these questions by combining two things: how far price has stretched from fair value, and whether volume actually supports the current move.
This indicator works right out of the box. Add it to your chart and it immediately shows you the current market regime — no configuration needed.
What It Does
The indicator adds a meter below your chart that shows two things simultaneously:
1. How Stretched Is Price?
The meter line shows how far price has moved from its average (VWAP — the volume-weighted average price). Think of it like a rubber band:
- Center line (zero) = Price is at fair value
- Moving up = Price is stretched above fair value (overbought territory)
- Moving down = Price is stretched below fair value (oversold territory)
- Extreme zones = Price is stretched so far it's likely to snap back
2. What Regime Is the Market In?
The indicator classifies the market into 5 clear states based on whether volume confirms or contradicts what price is doing:
| Regime | Color | What It Means |
|---|---|---|
| BULL | Green | Price is above average AND buying volume is rising — the uptrend is real |
| BEAR | Red | Price is below average AND selling volume is rising — the downtrend is real |
| Distribution | Orange | Price is above average BUT buying volume is fading — the rally may be losing steam |
| Accumulation | Orange | Price is below average BUT buying volume is picking up — a bounce may be building |
| FLAT | Gray | Volume is quiet — the market is consolidating, no clear direction |
What You'll See
The Meter
A line oscillating above and below the center:
- Above center = Price is above the average (potential overbought area)
- Below center = Price is below the average (potential oversold area)
- Color-coded zones at the extremes show where price is statistically stretched:
- Green zones at the bottom = Oversold (potential buying opportunity)
- Red zones at the top = Overbought (potential selling opportunity)
Info Panel
A small panel on your chart shows:
- The current VWAP price (the volume-weighted average)
- The current Regime (BULL, BEAR, Distribution, Accumulation, or FLAT)
- The current meter reading
- Whether volume is showing BUYING, SELLING, or FLAT pressure
How to Use
Add the indicator to your chart by searching for "Pagani" in TradingView's indicator menu. The meter appears below your chart.
Check the regime first. Before taking any trade, glance at the regime state. BULL means you should favor long trades. BEAR means favor shorts. This is your directional compass.
Watch for Distribution and Accumulation. These are early warning signals:
- Distribution (price up, volume fading) = The rally might be ending — be cautious about new longs
- Accumulation (price down, volume picking up) = A bounce might be coming — watch for buying opportunities
Use the extreme zones. When the meter reaches the far upper or lower zones, price is statistically stretched and likely to pull back toward the average. These are potential mean-reversion opportunities.
Combine with other signals. When the VWAP regime aligns with signals from other Pagani indicators (e.g., BULL regime + bullish Order Block + exhaustion signal), you have very strong confluence.
Trading Tips
Alerts
Regime-Aware VWAP can notify you of important market shifts:
- Distribution alert — Volume starts diverging bearishly from price
- Accumulation alert — Volume starts diverging bullishly from price
- Extreme overbought/oversold — Price reaches statistically extreme levels
- VWAP cross — Price crosses above or below the volume-weighted average
See the Alerts Setup guide for step-by-step configuration instructions.