The formula is based on volume and second/third derivations of price to create known, reliable zones where a trade may be executed. It is the same formula used in VFAP Bands, but with it as an detached indicator there are minor adjustments and it is much easier to visualize on lower time frames where the outer bands are not visible.
The main focus is reliability,...
A lighter trial version of VFAP Bands:
This current iteration is only usable on Coinbase's LTCUSD ticker.
See more info about VFAP Bands here: medium.com
What VFAP accomplishes is finishing what VWAP started, which is to find the best liquidity for market makers to profit off the bid/ask spread. What price is the best? Of course, nobody would tell you this. Otherwise it would be easy for bigger market participants to hunt or prevent being hunted.
This is where VFAP comes in: by being able to visualize optimal...
![BTCUSD: VFAP Grid [NeoButane]](https://s3.tradingview.com/j/jR5FgZkV_mid.png "VFAP Grid [NeoButane]")
![LTCUSD: VFAP Bands: Volume Flow Aggregate Price Lite [NeoButane]](https://s3.tradingview.com/k/KgSn3Q0L_mid.png "VFAP Bands: Volume Flow Aggregate Price Lite [NeoButane]")
![ETHUSD.P: VFAP Bands: Volume Flow Aggregate Price [NeoButane]](https://s3.tradingview.com/s/s02XCT3I_mid.png "VFAP Bands: Volume Flow Aggregate Price [NeoButane]")