THMA VWAP Oscillator [by Oberlunar]

The THMA VWAP Oscillator of Oberlunar is a trend-following and liquidity-sensitive indicator that blends the Triple Hull Moving Average (THMA) with Volume Weighted Average Price (VWAP) deviation bands to highlight high-probability trading setups. It helps traders differentiate between healthy momentum moves and market noise, making it an effective tool for spotting trend continuations, reversals, and mean reversion trades.

At its core, the THMA is an advanced moving average that smooths price action while minimizing lag. Unlike conventional moving averages that react slowly, the THMA dynamically adapts to market conditions by applying a weighted smoothing process. This allows it to react more efficiently to momentum shifts, making it ideal for trend-following and breakout strategies.

The VWAP acts as a volume-weighted price equilibrium, giving traders a framework for understanding institutional positioning. Since VWAP considers both price and volume, it helps determine whether the market is trading at a premium or a discount relative to where most of the volume has transacted. The inclusion of VWAP deviation bands, derived from standard deviations, enhances the ability to detect overbought and oversold conditions, ensuring that signals align with key liquidity levels.

The indicator generates buy and sell signals based on a structured methodology that incorporates trend direction, liquidity positioning, and momentum confirmation. A buy signal is triggered when the THMA on a higher timeframe is positioned below the THMA of the current timeframe, indicating that the broader trend is supportive of an upward move. Additionally, the THMA must be trading below the lower VWAP deviation band, suggesting that price is in a discounted liquidity zone, which is often an area where institutional buyers step in. To ensure that the signal is not just a random fluctuation, the THMA must also show positive slope, meaning it is actively rising, confirming that price is attempting to reverse or continue its upward move with strength.

A sell signal follows the same logic in reverse. The THMA on a higher timeframe must be above the THMA of the current timeframe, confirming alignment with a broader downtrend. The THMA must also be positioned above the upper VWAP deviation band, signaling that price is extended and potentially due for a reversal. To validate that the momentum is actually weakening, the THMA must be in a declining slope, ensuring that price is not simply pausing but actually entering a phase of downward acceleration.

One of the key nuances of the THMA VWAP Oscillator is how it visually represents momentum through the serpentine line, which dynamically shifts color as it develops. When the serpentine line maintains a consistent color—green in an uptrend or red in a downtrend—it signals strong trend conviction. However, when the color fluctuates rapidly between green and red, it indicates a weakening signal, suggesting that price action is becoming choppy and trend strength is deteriorating. This alternation in color serves as an early warning of potential reversals, false breakouts, or trend exhaustion. Traders should be cautious when signals appear in conjunction with an unstable serpentine, as they are less likely to be reliable in such conditions.

To further enhance signal quality, the indicator incorporates a signal alternation mechanism, ensuring that consecutive buy or sell signals do not appear unless the previous trade setup has been invalidated. This helps prevent overtrading in consolidating markets and reduces the chances of chasing false breakouts. Additionally, the placement of buy and sell labels is optimized using ATR-based scaling, positioning them strategically above or below price action to maintain chart clarity without interfering with live price movements.

By integrating trend structure, liquidity positioning, and signal validation, the THMA VWAP Oscillator provides a structured approach to trade execution. It is particularly effective for traders looking to capture breakout moves, pullback entries, and mean reversion opportunities, as it ensures that entries are aligned with market momentum, institutional positioning, and price equilibrium dynamics. The ability to filter out weak signals while identifying strong momentum trends makes it an indispensable tool for trend-followers, breakout traders, and mean reversion specialists alike.


I am very pleased to share that I am publicly releasing one of my private indicators, which I usually provide exclusively to my community. This is a significant moment for me, as this tool has been carefully refined and tested to offer high-quality trading insights.

I also want to take this opportunity to thank my entire community for the incredible support I have received over the past few months. Your feedback, engagement, and enthusiasm continue to inspire me, and I truly appreciate being part of this journey with all of you.

Stay tuned for more updates, and as always, trade smart! 🚀