Supertrend

Supertrend is an ATR-based trend-following indicator that plots a single line above or below price. When the line is below price, the trend is bullish; when above, the trend is bearish. It is simpler than Parabolic SAR and adapts to volatility through its ATR component.

Upper Band = (High + Low) / 2 + Multiplier × ATR(Period)
Lower Band = (High + Low) / 2 - Multiplier × ATR(Period)

If Close > Upper Band_prev → Supertrend = Lower Band (bullish)
If Close < Lower Band_prev → Supertrend = Upper Band (bearish)

The indicator flips between the upper and lower bands based on price action.

• Single line — easy to read, no chart clutter.
• ATR-adaptive — automatically adjusts to market volatility.
• Clear signals — trend direction changes are unambiguous.
• Built-in stop — the Supertrend line itself serves as a stop-loss level.

Trend direction

• Supertrend below price — uptrend (bullish).
• Supertrend above price — downtrend (bearish).

Reversal

• Supertrend flips from above to below price — buy signal.
• Supertrend flips from below to above price — sell signal.

Trailing stop

• Use Supertrend value as a dynamic stop-loss that moves with the trend.

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 10 | ATR lookback period | | Multiplier | 3.0 | ATR multiplier for band width |

| Component | Description | |-----------|-------------| | SUPERTREND_TREND | Trend direction: 1 = bullish, -1 = bearish |

| Condition | Meaning | |-----------|---------| | SUPERTREND_TREND > 0 | Supertrend is bullish | | SUPERTREND_TREND < 0 | Supertrend is bearish | | close > SUPERTREND(10) | Price above Supertrend line — uptrend |

• Supertrend works best in trending markets — combine with ADX for trend confirmation.
• Higher multiplier (4-5) = wider bands, fewer signals, better for swing trading.
• Lower multiplier (1-2) = tighter bands, more signals, better for scalping.
• Supertrend is popular in crypto trading due to its simplicity and ATR adaptation.
• Compare with Parabolic SAR — Supertrend is generally less sensitive and produces fewer whipsaws.