Supertrend
Supertrend is an ATR-based trend-following indicator. It is designed to identify the current trend direction and provide clear buy and sell signals.
Dynamic Chart Demo
* This chart uses synthetic data to demonstrate the indicator's behavior in typical market conditions.
Core Usage
Advantages
- Extremely easy to read (color-coded)
- Great for setting trailing stops
- Effective at filtering out minor market noise
Limitations
- Significant lag during sharp reversals
- Produces many false signals in sideways/choppy markets
- Requires tuning ATR multiplier for different assets
Calculation Logic
Understanding the mathematical logic behind indicators helps you interpret signals more accurately and avoid misuse in unsuitable market environments.
Common Trading Strategies
Supertrend Following
Buy when the line turns green; Sell when the line turns red.
Supertrend + RSI
Combine with RSI to avoid entering Supertrend signals in overbought/oversold zones.
Best For
「Trending markets and automated trend following.」
Note: Technical indicators are mathematical calculations based on historical price and volume. They should be used as part of a comprehensive trading system, not as a standalone entry signal.