Indicator guide · Trend

SuperTrend: what it shows, settings and how to read it.

A line that trails price using the Average True Range. It flips from below price (green) to above (red) when the trend changes.

What SuperTrend shows

A line that trails price using the Average True Range. It flips from below price (green) to above (red) when the trend changes.

How it is calculated

It starts from the middle of each candle (high + low, divided by 2) and places a line a multiple of the ATR away. The line only moves in the direction of the trend and flips to the other side when price closes through it.

Usual settings

ATR length 10 and multiplier 3. A smaller multiplier gives earlier, noisier signals.

How traders read it

Simple to read: stay long while price is above the line, stay out or short while it is below. It also works as a trailing stop.

Where it fails

Whipsaws in a range; many traders only take it in the direction of a higher timeframe.

What to combine it with

A 200 EMA as a trend filter and ADX to avoid sideways markets.

Try SuperTrend on a live chart

Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose SuperTrend. Click its name on the chart to change the settings. It is free for every member.

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Questions

Frequently asked questions

What is the SuperTrend indicator?
A line that trails price using the Average True Range. It flips from below price (green) to above (red) when the trend changes.
What are the best settings for SuperTrend?
The usual settings are: ATR length 10 and multiplier 3. A smaller multiplier gives earlier, noisier signals. No setting is best in every market, so test a change on past data before relying on it.
Is SuperTrend reliable on its own?
No single indicator is. Whipsaws in a range; many traders only take it in the direction of a higher timeframe. Most traders use it together with: A 200 EMA as a trend filter and ADX to avoid sideways markets.
How do I add SuperTrend to a chart for free?
Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose SuperTrend. Click its name on the chart to change the settings. It is free for every member.

This page is education, not investment advice. Trading involves substantial risk of loss. Read next: Trading indicators · Trading strategies · Candlestick patterns