SuperTrend Indicator

SuperTrend is a trend-following indicator based on ATR (Average True Range), appearing as a line on chart to identify trend direction and provide dynamic stop loss levels. SuperTrend line below price in green indicates uptrend, above price in red indicates downtrend.

Types

SuperTrend works best in trending markets, providing clear entry and exit signals. In strong trends, price rides along SuperTrend line, which serves as excellent trailing stop. Many traders combine SuperTrend with other indicators like ADX or RSI to improve signal accuracy. SuperTrend reversal signals can be used to close existing positions or open reverse positions. In ranging markets, SuperTrend generates frequent false signals; should avoid using or filter with trend strength indicators.