SuperTrend
ATR-based trailing stop-and-trend indicator that flips above or below price to define bull and bear regimes; clean, actionable signals.
Formula
Basic Upper Band = (High + Low) / 2 + Multiplier × ATR(n); Basic Lower Band = (High + Low) / 2 − Multiplier × ATR(n); Final bands adjust to never move away from price once set.
SuperTrend calculates upper and lower bands around a midpoint ((High + Low) / 2) using a multiplier of ATR (default 3 × ATR(10)). When price closes above the upper band it flips bullish — drawn as a green line below price (a trailing support/stop); when price closes below the lower band it flips bearish — drawn as a red line above price.
SuperTrend produces clean binary signals without the noise of crossover indicators: you are either long or flat/short based on which side price is on. The ATR multiplier controls sensitivity — a smaller multiplier tightens the stop and produces more signals; a larger multiplier gives the trend more room.
Example
Bitcoin's daily SuperTrend (10, 3) flips from red to green after a three-week consolidation. The green line sits at $58,200. Traders enter long, placing their hard stop just below $58,200, and trail it as SuperTrend rises.
Related Terms
Average Directional Index (ADX)
Non-directional trend-strength gauge (0–100); readings above 25 indicate a trending market, below 20 suggest a range.
IntermediateAverage True Range (ATR)
Volatility measure averaging the greatest of: current high–low, current high–prior close, or current low–prior close over n periods (default 14).
IntermediateKeltner Channel
Volatility envelope using a 20-period EMA as midline and ATR multiples (typically 2×) as upper and lower bands.
IntermediateParabolic SAR
Trend-following stop-and-reverse indicator that plots dots above (downtrend) or below (uptrend) price, accelerating as the trend matures.
IntermediateVortex Indicator
Trend indicator measuring upward and downward vortex movement; VI+ crossing above VI− signals a new uptrend, below signals a downtrend.
Intermediate