What is SuperTrend?
SuperTrend draws a single stepped line set a multiple of the average true range away from the middle of each bar. In an uptrend it sits below price in green and only moves up; in a downtrend it sits above price in red and only moves down. A close through the line flips it to the other side. The area between the line and the candle bodies is shaded in the trend's colour, so the current state is easy to see.
SuperTrend marks the current trend state and a volatility-based level that would end it. It does not measure trend strength, does not anticipate reversals, and does not filter out ranging markets.
How to use SuperTrend
- Colour and side. Green below price is an uptrend, red above price a downtrend. That is the whole state of the indicator.
- The flip. A close beyond the line changes the trend. It is a confirmation that price has moved further than recent volatility allows, which means it always arrives after the turn.
- The line as a trailing stop. Because the band only moves in the trend's direction, it is often used as a trailing stop level.
- Factor and ATR Length. A smaller factor keeps the band closer to price and flips more often; a larger one gives trends more room and flips later.
These are ways to read the line, not entry signals on their own.
Settings
| Setting | Default | What it changes |
|---|---|---|
| ATR Length | 10 | Bars in the average true range. Lower reacts faster to changes in volatility; higher is steadier. Minimum 1. |
| Factor | 3 | How many ATRs the band sits from the bar's midpoint. Lower hugs price and flips more; higher flips less and later. Range 0.01 to 100. |
Adjust the ATR length and factor in the indicator settings.
Calculation
Two bands are built around the midpoint of each bar, hl2, then held so they can only move in the trend's direction:
ATR = Wilder's smoothing of true range over 10 bars
upper band = (high + low) / 2 + 3 * ATR
lower band = (high + low) / 2 - 3 * ATR
lower band = max(lower band, previous lower band) if previous close > previous lower band
upper band = min(upper band, previous upper band) if previous close < previous upper band
downtrend turns up when close > previous upper band
uptrend turns down when close < previous lower band
SuperTrend = lower band in an uptrend, upper band in a downtrendThe true range falls back to high minus low on the first bar, where there is no previous close, and the ATR uses Wilder's smoothing. The trend starts as an uptrend on the first bar, since the calculation needs a starting state.
The result is path-dependent: the bands and the trend carry from bar to bar, so every value depends on everything before it. The band resets only when the trend flips.
The shading runs between the active band and the middle of each candle's body, halfway between open and close. The line breaks at a flip rather than drawing a vertical joint through the candles.
Limitations
- It lags by design. A flip needs a close beyond a band three ATRs away, so it confirms a turn well after it has started.
- Ranges produce whipsaws. In a sideways market price can close through the band repeatedly, flipping it back and forth.
- The live candle can flip and flip back. A flip is decided on the close, so during a live bar the line can switch sides and switch back before the bar closes.
- History affects it. Because each value depends on all earlier bars, the line on a chart with more history loaded can differ from a chart with less until the next flip.
- It is not a strategy. On its own it carries no position sizing, entry filter or risk management.
Frequently asked questions
SuperTrend is a trend-following line set a multiple of the average true range away from each bar's midpoint. It sits below price in an uptrend and above it in a downtrend, only moves in the trend's direction, and switches sides when a close breaks through it.
The built-in defaults are ATR Length 10 and Factor 3. A lower factor keeps the line tighter and flips more often, including in noise; a higher factor tolerates bigger pullbacks but flips later. There is no universally best pair, so test settings on the market and timeframe you trade.
Yes. The indicator declares two inputs: ATR Length, default 10 with a minimum of 1, and Factor, default 3, from 0.01 to 100. Open the indicator's settings on the chart to change them.
Closed bars are not revised. The current bar can change colour and side while it is live, because the flip is decided by the close, so a flip is only confirmed once the bar has closed. One more caveat: SuperTrend carries its state from the first loaded bar, so loading older history can change the line until the two versions next flip at the same point.
Both trail price and flip on a reversal. SuperTrend's distance comes from the average true range, so it widens and narrows with volatility. [Parabolic SAR](/library/indicator/parabolic-sar) accelerates towards price the longer a trend runs, whatever the volatility.
Use the Add to chart button at the top of this page. It opens BTC/USDT on Binance in the Altrady Charts terminal with the built-in SuperTrend already applied. On any other market, open the indicator picker on the chart and choose SuperTrend from the Trend group.