Trend-following indicator
Supertrend
An ATR-based trend line that flips with the trend and trails as a stop.
What is Supertrend?
Supertrend is a popular trend-following indicator that plots a single line above or below price based on ATR. When price closes through it, the line flips to the other side, giving a clear, binary trend signal that doubles as a trailing stop.
How it works
Supertrend builds upper and lower bands a multiple of ATR away from a median price. In an uptrend it shows the lower band (acting as a trailing stop); when price closes below it, it flips above price and the trend is considered bearish. The ATR basis means it widens in volatile markets and tightens in quiet ones.
How traders use it
- ▸Entries: go long when Supertrend flips below price, short when above.
- ▸Trailing stop: ride trends using the line as a dynamic stop.
- ▸Trend filter: only take other signals in Supertrend's direction.
- ▸Multi-timeframe: align Supertrend across timeframes for confluence.
Build Supertrend without code in Algovex
Supertrend is a node in Algovex with its flip events exposed. Trigger entries on a flip, use it as a trailing stop, or gate other logic by its direction, then backtest and export.
Key parameters
| Parameter | What it does |
|---|---|
| atrLength | ATR lookback period (commonly 10). |
| multiplier | ATR multiplier for the band distance (commonly 3). |
Frequently asked questions
What are the best Supertrend settings?
A common starting point is ATR length 10 with a multiplier of 3. Lower multipliers flip more often (more signals, more noise); higher ones flip less. Backtest the pair on your instrument in Algovex.