Glossary

Deviation Bands

Bands plotted around a reference line, often VWAP, to show how stretched price is relative to recent behavior.

What it means

Deviation bands frame price distance from a central reference such as VWAP. Traders use them to visualize expansion, compression, and relative stretch.

What to watch

Bands are context, not automatic fade signals. Strong trends can stay near or beyond a band much longer than expected.