Q: Key features

- **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.

Q: Trend direction

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

Q: Reversal

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

Q: Trailing stop

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

Q: Parameters

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

Q: Sub-components

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

Q: Example conditions

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

Question 1

What is Supertrend?

Accepted Answer

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.

Question 2

How it works

Accepted Answer

``` 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.

Question 3

Key features

Accepted Answer

- **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.

Question 4

Trend direction

Accepted Answer

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

Question 5

Reversal

Accepted Answer

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

Question 6

Trailing stop

Accepted Answer

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

Question 7

Parameters

Accepted Answer

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

Question 8

Sub-components

Accepted Answer

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

Question 9

Example conditions

Accepted Answer

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

Question 10

Tips

Accepted Answer

- 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.