ATR+VWAP Alert

The ATR+VWAP Alert indicator is a trend-following signal tool designed to capture volatile intraday moves by combining Volume Weighted Moving Average (VWMA) crossovers with ATR, VWAP, and RSI filters.

Usage

The indicator generates buy and sell signals represented by "up" and "down" triangles on the chart.

• Long Signals: Appear when the 13-period VWMA crosses above the 62-period VWMA while the price is above the VWAP, the RSI is above 55, and the ATR is rising.
• Short Signals: Appear when the 13-period VWMA crosses below the 62-period VWMA while the price is below the VWAP, the RSI is below 45, and the ATR is rising.

Traders often use the VWAP as a dynamic stop-loss level; if a candle closes on the opposite side of the VWAP against the trade direction, it may indicate a trend reversal. Due to the fast-moving nature of these signals, using fixed take-profit targets (e.g., 20-30 pips) is often preferred over waiting for an exit signal.

Details

The script utilizes several layers of confirmation to ensure momentum is present before signaling:

• Trend Identification: Uses a 13 and 62 VWMA crossover to identify volume-backed trend shifts.
• Volatility Filter: Employs the Average True Range (ATR) to ensure the market is "on the move." Signals only trigger when ATR is rising and above a minimum threshold (0.0006).
• Bias Filter: The VWAP acts as a baseline for intraday value, ensuring longs are only taken in bullish territory and shorts in bearish territory.
• Momentum Filter: The RSI weeds out weak signals by requiring a reading above 55 for longs or below 45 for shorts.

Settings

• RSI Length: (Internal) Set to 14 periods to filter momentum.
• ATR Length: (Internal) Set to 14 periods to measure volatility.
• VWMA Lengths: (Internal) Set to 13 and 62 periods for trend detection.
• ATR Threshold: (Internal) Set to 0.0006 to filter out low-volatility environments.

FAQ

How do I set up alerts for this tool?

To set up an alert, right-click a signal on your chart and select "Add Alert." Choose the "Buy-Signal" or "Sell-Signal" condition and set the trigger to "Once Per Bar Close."

What timeframes and assets work best?

The script is optimized for intraday trading and is particularly effective on volatile assets like Cryptocurrencies and Forex pairs.

How do I access ATR+VWAP Alert?

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