SUPER TREND Trading Guide
The SuperTrend is designed to automatically detect clear directional market trends and define strict trailing support or resistance levels based on market volatility. By monitoring the Average True Range (ATR), the indicator perfectly visualizes the distinction between upward trending zones and downward momentum shifts.
What does the indicator show?
- Up Trend Line: A dynamic support level drawn below the price during bullish market conditions.
- Down Trend Line: A dynamic resistance level drawn above the price reflecting periods of bearish market pressure.
- Trend Fill Highlighting: A colored background fill spanning roughly between the price bars and the trend line, instantly providing visual confirmation of the active structure.
- Directional Signals: Obvious textual entry and exit markers identifying the moment price breaches the opposing boundary line.
Key Settings
- ATR Period: Defines the amount of recent historical data used to evaluate current price volatility.
- Multiplier: Controls the offset distance of the trend line away from the median price, effectively adjusting risk tolerance.
- Use True ATR: Determines whether the volatility measurement utilizes standard True Range summing or complex recursive moving average logic.
How to use Strategy Parameters (Condition Source)
Within the Strategy Tester module, you can leverage the data from this indicator to create powerful logical conditions for trade entries and exits.
1. Trend Variables
Variables defining the actual numeric lines.
upTrend— The calculated price value of the lower support boundary during a bullish move.downTrend— The calculated price value of the upper resistance boundary during a bearish move.
2. States & Triggers
Immediate signals representing cross behaviors.
buySignal— An immediate trigger sent the moment a bearish trend breaks forming an uptrend.sellSignal— An immediate trigger sent the moment an upward trend structurally breaks.isUpTrend— A continuous state flag active during the entirety of a bullish phase.isDownTrend— A continuous state flag active during the entirety of a bearish phase.
Strategy Example: If you are looking to enter a Long position, you could add a condition: buySignal == true. Moreover, to establish an exit parameter in your strategy, simply set a close condition to match when price drops below the variable upTrend.