Smoothed SuperTrend with VWAP Confirmation

The Smoothed SuperTrend with VWAP Confirmation indicator identifies high-probability trend reversals by combining an optimized, noise-filtered SuperTrend with Volume-Weighted Average Price (VWAP) verification.

Usage

The tool is primarily used to identify entries in the direction of a confirmed trend. It evaluates three distinct sets of SuperTrend parameters simultaneously and selects the most effective one based on historical performance.

Signals are generated as follows:

• Confirmed Long: Occurs when the price is above the VWAP for a specific number of candles and the selected SuperTrend flips to a bullish state.
• Confirmed Short: Occurs when the price is below the VWAP for a specific number of candles and the selected SuperTrend flips to a bearish state.

Traders can use the on-chart labels to view current signals and the performance dashboard to see which parameter set (Factor and ATR Length) is currently being utilized by the algorithm.

Details

The script utilizes a Super Smoother filter to process price action and ATR values, significantly reducing the "sawtooth" effect common in standard trend-following indicators. It dynamically tracks three SuperTrend instances with different sensitivities.

A unique feature is the automatic optimization engine:

1. Performance Tracking: The script calculates the cumulative percentage return of each parameter set.
2. Selection Logic: Based on user settings, it picks the best (or worst) performer to plot on the chart.
3. VWAP Reset: The VWAP calculation resets upon every trend change identified by the selected SuperTrend, ensuring that volume-weighted support and resistance levels are relevant to the current market phase.

Settings

General Settings

• Minimum Candles for Condition: Defines how many consecutive candles the price must stay above/below VWAP before a signal is valid.
• Super Smoother Length: Controls the degree of smoothing applied to the price and ATR.
• Best Performers or Worst Performers?: Determines whether the script should automatically select the parameter set with the highest or lowest cumulative return.

SuperTrend Parameters (Groups 1-3)

• Factor: The multiplier for the ATR to set the distance of the trend bands.
• ATR Length: The lookback period for the Average True Range calculation.

Visual Settings

• Label Sizes: Adjustable sizes for Long, Short, and Information labels.

FAQ

How do I interpret the "Best Parameters" label?

The label displays the specific Factor and ATR length currently selected by the script's optimization engine, along with its cumulative historical performance.

Can I use this for scalping or swing trading?

Yes. By adjusting the Factor and ATR Length in the three SuperTrend groups, you can tailor the sensitivity for lower timeframes (scalping) or higher timeframes (swing trading).

How can I access Smoothed SuperTrend with VWAP Confirmation?

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