Volume-Weighted Supertrend with Volume-Trend Entry Filters

Summary

This script adapts Supertrend by centering its volatility bands on a recent volume-weighted average price rather than a simple price reference. ATR scales the upper and lower bands, and the band logic carries prior values forward to form a trend-following signal. A second Supertrend is applied to volume, creating a separate indication of whether volume is rising or falling.

Long entries and exits are based on combinations of price-trend changes and volume-trend state changes. The script includes configurable ATR period, volume window, multiplier, and display settings; strategy orders are conditional on enabling the strategy display option. The supplied excerpt explains the implementation but gives no backtest results, market, timeframe, or evidence of profitability. Its use of volume as a trend input may also depend on the quality and meaning of volume data in the chosen market.

Key ideas

• The price Supertrend bands are centered on a volume-weighted average over a configurable window.
• ATR scales the bands, while persistent band logic helps define the changing trend state.
• A separate Supertrend applied to volume supplies a second trend filter for entries and exits.
• Trading signals combine price trend transitions with the direction of the volume trend.
• The excerpt provides implementation details but no performance evidence or market-specific validation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.