Key Takeaways
Supertrend
Trend-following indicator based on ATR that plots above or below price to show trend direction.
Formula
Detailed Explanation
Supertrend is a popular trend-following indicator that uses ATR for volatility-based trailing stops.
How It Works:
- Calculates bands based on ATR
- Flips direction when price crosses the band
- Provides clear visual trend indication
Trading Setup Example
Entry, stop loss, and take profit levels.
Always wait for signal confirmation before entering a trade.
Where This Indicator Works Best
Trend context and market position.
Works best in strongly trending markets.
Live Chart ā Supertrend
See Supertrend in action on a live chart. Try changing the settings and timeframe.
Supertrend is a manual drawing tool or chart type and cannot be auto-overlaid as a study.
Open Chart on TradingViewParameters
š Bullish Signals
Supertrend flips from above to below price (red to green)
š Bearish Signals
Supertrend flips from below to above price (green to red)
Python Implementation
Supertrend calculation
TradingView Pine Script
MT5 MQL5 Code
Python Libraries
Common Mistakes
Confirmation Signals
Best For
š” Pro Tips
- ā¢Works well in trending markets
- ā¢Combine with other indicators to filter false signals
- ā¢Default settings (10, 3) work well for most instruments
Educational Disclaimer
This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.
Frequently Asked Questions
Related Indicators
Average True Range (ATR)
Measures market volatility by calculating the average range between high and low prices.
Average Directional Index (ADX)
Measures trend strength without indicating direction. Values 0-100, higher = stronger trend.
Parabolic SAR
Stop and Reverse indicator that provides potential entry/exit points and trailing stop levels.