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Volatility Flow X | Dual Trend Strategy [VWMA+SMA+ADX]

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📌 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.

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