VWAP Z Score Histogram for MT5: Precise VWAP-based signals for mean-reversion trading

The VWAP Z Score Histogram review for 2026 opens with an objective performance analysis based on live and backtest samples across major forex pairs and selected CFD instruments. This indicator stands out by converting the distance from VWAP into a normalized z-score and displaying it as a rolling histogram, so users can quickly see when price is statistically far from the intraday volume-weighted average. Johannes Human developed the tool to use tick volume weighting, which aligns with common Forex conventions and improves signal relevance on non-tick-data platforms. The algorithm calculates a rolling mean and standard deviation of VWAP deviations and colors histogram bars to mark positive and negative z-scores. In practice, VWAP Z Score Histogram performs best in range-bound or mean-reverting intraday conditions, notably on EURUSD, GBPUSD, and liquid indices during overlap hours. The indicator is less effective in strong trending regimes without supplementary trend filters. Risk management is integrated in the recommended workflows: users should combine histogram thresholds with time-of-day filters, volatility-based stop sizes, and adaptive position sizing to limit drawdown. Expected performance characteristics include moderate trade frequency, high signal precision when thresholds are tuned, and average holding periods measured in minutes to hours. Overall, VWAP Z Score Histogram is an analytical decision-support tool designed to complement discretionary or algorithmic strategies rather than replace them.