Volume Weighted Trend is a trend-following indicator for cTrader that integrates volume and volatility to identify market trends with enhanced precision. It combines the Volume Weighted Moving Average (VWMA) to weight price action by tick volume, reflecting the true market "center of gravity," with an Average True Range (ATR) envelope that filters out market noise by adjusting for volatility. This dual approach signals trend changes only when price momentum surpasses dynamic volatility thresholds.
Key features include volume-weighted accuracy, ATR-based dynamic support and resistance channels, real-time bullish/bearish candle coloring for visual bias confirmation, and multiple pre-built presets optimized for scalping, swing trading, and long-term trend following. The indicator offers five professional color schemes plus a customizable mode and uses advanced drawing logic for smooth, high-performance trend line rendering.
Trading signals are generated when price closes above or below the ATR bands, indicating bullish or bearish trends respectively, with entry points on pullbacks confirmed by reversal signals. Exits or reversals can be managed using the median VWMA line or previous highs as targets.
Parameters allow customization of VWMA length, ATR multiplier for channel tightness, visual controls, and preset modes for fast, balanced, or smooth responses. This indicator supports visualization and filtering outputs and requires bar and volume data.