Arc VWAP Supertrend

The Arc VWAP Supertrend indicator is a momentum-adaptive trend-following system that utilizes a self-accelerating arc and multi-period VWAP confirmation to identify directional shifts. It scales its sensitivity based on market behavior and volume-weighted price context, providing tighter trend adherence during high-conviction moves and broader breathing room during consolidation.

Usage

The indicator functions as a comprehensive trend framework. Traders can use the arc surface as dynamic support or resistance, with the trend flipping when price closes across the arc.

Key usage scenarios include:

• Trend Confirmation: Use the built-in VWAP filter to classify flips as "Confirmed" (aligned with volume-weighted context) or "Filtered" (conflicting with volume context).
• Trailing Stops: The accelerating arc serves as a progressive trailing stop that tightens as a trend matures.
• Structural Support/Resistance: Flip levels identify the origin of trend changes. These levels remain active as horizontal reference points until breached by price.
• Momentum Assessment: The candle gradient reflects extension from the arc; bright colors indicate strong momentum, while faded colors suggest proximity to the arc and potential inflection.

Details

The core of the system is a velocity-accumulating arc engine. Upon a trend flip, the arc is placed at a distance determined by a 100-bar ATR. As the trend progresses, the arc accelerates toward price at a rate influenced by the distance between the current price and the selected VWAP period (Session, Weekly, or Monthly).

The indicator manages four coordinated systems:

1. Arc Engine: Controls velocity and directional positioning.
2. VWAP Layer: Handles multi-period volume-weighted calculations and distance normalization.
3. Flip Level System: Draws horizontal structural lines that are instantly removed upon invalidation to prevent chart clutter.
4. Visual Layer: Renders gradients, clouds, and markers to communicate trend state.

Settings

• Arc Speed: The base acceleration rate of the arc.
• Start Distance (ATR×): Initial distance of the arc from price at the start of a trend.
• Smoothing: Number of bars used for smoothing the arc and candle gradients.
• Flip Levels: Toggle for horizontal reference lines at flip points.
• VWAP Filter Period: Selects the period (Session, Week, Month, Any, or All) required for signal confirmation.
• VWAP Distance Speed Boost: Determines how much faster the arc accelerates when price is far from the VWAP reference.
• Color Settings: Independent controls for Bullish and Bearish trend colors.

FAQ

How do I interpret a "Filtered" signal? A filtered signal occurs when the price flips across the arc, but the direction is not supported by the selected VWAP context. This suggests a potential lack of volume-backed conviction for the new trend.

What happens when a flip level is "broken"? The indicator is designed to keep charts clean. When price closes through an active flip level, the line and its price label are immediately deleted.

How can I access the Arc VWAP Supertrend? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.