OPEN-SOURCE SCRIPT
Volatility Flow X | Dual Trend Strategy [VWMA+SMA+ADX]
📌 Strategy Title
Volatility Flow X | Dual Trend Strategy [VWMA+SMA+ADX+ATR Cloud]
🧾 Description
🚀 Strategy Overview
Volatility Flow X is a dual-directional trading strategy that combines Volume-Weighted MA (VWMA) for momentum, Simple MA (SMA) for trend direction, ADX for trend strength filtering, and ATR-based volatility cloud for dynamic support/resistance zones.
It is designed specifically for high-volatility assets like BTC/USD on intraday timeframes such as 15 min, 30 min, and 1 hour — offering both breakout and trend-following opportunities.
🔬 Technical Components and Sources
1. VWMA (Volume-Weighted Moving Average)
Captures volume-weighted momentum shifts.
📚 Kirkpatrick & Dahlquist (2010) — “Technical Analysis”
2. SMA (Simple Moving Average)
Used as a baseline trend direction validator.
📚 Ernie Chan — “Algorithmic Trading” (2013)
3. ADX (Average Directional Index)
Filters out low-conviction signals based on trend strength.
📚 J. Welles Wilder (1978) — ADX in directional movement systems
4. ATR Cloud (Volatility Envelope)
Creates upper and lower dynamic bands using ATR to visualize trend pressure.
📚 Zunino et al. (2017) — Fractal volatility behavior in Bitcoin markets
🧠 Key Features
✅ 3 configurable Long signal modes
✅ 3 configurable Short signal modes
✅ Manually switchable signals for flexibility
✅ Auto-calculated TP/SL using ATR and risk/reward ratio
✅ ADX filter to avoid choppy trends
✅ Visual cloud overlay for support/resistance
✅ Suitable for scalping and short-term swing trading
⚙️ Recommended Settings (for BTC/USDT – 30min)
VWMA Length = 18
SMA Length = 50
ATR Length = 14, Multiplier = 2.5
Risk-Reward Ratio = 1.5
ADX Length = 14, Threshold = 18, Lookback = 4
⚠️ Disclaimer
This strategy is not financial advice. Please backtest and understand the risks before using it in live markets.
Volatility Flow X | Dual Trend Strategy [VWMA+SMA+ADX+ATR Cloud]
🧾 Description
🚀 Strategy Overview
Volatility Flow X is a dual-directional trading strategy that combines Volume-Weighted MA (VWMA) for momentum, Simple MA (SMA) for trend direction, ADX for trend strength filtering, and ATR-based volatility cloud for dynamic support/resistance zones.
It is designed specifically for high-volatility assets like BTC/USD on intraday timeframes such as 15 min, 30 min, and 1 hour — offering both breakout and trend-following opportunities.
🔬 Technical Components and Sources
1. VWMA (Volume-Weighted Moving Average)
Captures volume-weighted momentum shifts.
📚 Kirkpatrick & Dahlquist (2010) — “Technical Analysis”
2. SMA (Simple Moving Average)
Used as a baseline trend direction validator.
📚 Ernie Chan — “Algorithmic Trading” (2013)
3. ADX (Average Directional Index)
Filters out low-conviction signals based on trend strength.
📚 J. Welles Wilder (1978) — ADX in directional movement systems
4. ATR Cloud (Volatility Envelope)
Creates upper and lower dynamic bands using ATR to visualize trend pressure.
📚 Zunino et al. (2017) — Fractal volatility behavior in Bitcoin markets
🧠 Key Features
✅ 3 configurable Long signal modes
✅ 3 configurable Short signal modes
✅ Manually switchable signals for flexibility
✅ Auto-calculated TP/SL using ATR and risk/reward ratio
✅ ADX filter to avoid choppy trends
✅ Visual cloud overlay for support/resistance
✅ Suitable for scalping and short-term swing trading
⚙️ Recommended Settings (for BTC/USDT – 30min)
VWMA Length = 18
SMA Length = 50
ATR Length = 14, Multiplier = 2.5
Risk-Reward Ratio = 1.5
ADX Length = 14, Threshold = 18, Lookback = 4
⚠️ Disclaimer
This strategy is not financial advice. Please backtest and understand the risks before using it in live markets.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.