stelaraX - Supertrend VWAP Confluence

stelaraX – Supertrend VWAP Confluence

stelaraX – Supertrend VWAP Confluence is a trend and fair-value confirmation indicator designed to highlight higher-quality directional phases when Supertrend trend state aligns with price position relative to VWAP. By requiring confluence between a volatility-based trend filter and a volume-weighted benchmark, it helps traders focus on cleaner trend conditions and avoid mixed-regime noise.

This indicator is part of the stelaraX ecosystem, focused on clean technical analysis and AI-supported chart evaluation
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Core logic

The script calculates a standard Supertrend (ATR-based) and an intraday VWAP (volume-weighted average price) and then checks if both components support the same directional bias.

Key principles:

* Supertrend defines trend state using ATR volatility and a factor multiplier
* VWAP acts as a fair-value anchor derived from volume-weighted price
* bullish confluence occurs when Supertrend is bullish and price is above VWAP
* bearish confluence occurs when Supertrend is bearish and price is below VWAP
* signals trigger at the start of a new confluence phase (state change)

This confluence requirement reduces false trend signals when price is trading on the wrong side of VWAP or when trend state is not supported by participation-weighted positioning.

Visualization

The script plots:

* the Supertrend line directly on the price chart with bullish/bearish coloring
* the VWAP line as a clean fair-value reference
* background shading when confluence is active (bullish or bearish)
* diamond markers when a new confluence phase begins
* alert conditions for bullish and bearish confluence start events

This creates a clear, at-a-glance view of trend + fair-value alignment.

Use case

This indicator is intended for:

* filtering trend entries by requiring VWAP confirmation
* identifying higher-quality trend phases for intraday trading
* reducing whipsaws in mixed or mean-reverting conditions
* supporting trend-following and pullback continuation setups
* combining volatility-based trend logic with volume-weighted context

It is especially effective on intraday markets (indices, FX, metals, crypto) where VWAP is a meaningful session benchmark and integrates well with AI-assisted chart evaluation.

Disclaimer

This indicator is provided for educational and technical analysis purposes only and does not constitute financial advice or trading recommendations. All trading decisions and risk management remain the responsibility of the user.