The SuperTrend Indicator is an excellent way to identify the existing marketplace trend. The indicator displays an obvious distinction between uptrends and downtrends. When the indicator is usually smooth and flipping from above to below it demonstrates there is absolutely no trend currently.

Trend followers may use SuperTrend about the daily timeframe to recognize the main trend and use the one hour or 30min or 15min chart to recognize trade entry opportunities.

Before understanding the supertrend indicator, understanding the ATR is essential as super trend employs ATR values to calculate the indicator values. I'll assume you understand ATR and how exactly to use the same.


The SuperTrend indicator is calculated utilizing the ATR to offset the indicator from the common price. When the price touches the SuperTrend collection it turns to the other direction. One of the advantages of the SuperTrend is definitely that it just moves in direction of the trend.


The supertrend indicator is plotted more than the price chart of the stock or the index. The indicator line adjustments its color between green and red predicated on the price instant in the underlying. Super trend will not predict the path, rather once the path is established it'll show you to initiate a posture and suggests you in which to stay the positioning till the trend sustains.

How exactly to calculate Supertrend Indicator

Supertrend Indicator shows trend direction and provides buy or sell indicators according to that. It is predicated on a mixture of the average price rate in today's period alongwith a volatility indicator. The ATR indicator is mostly utilized as volatility indicator.

The values are calculated the following:

BASIC UPPERBAND  =  (HIGH + LOW) / 2 + Multiplier * ATR
BASIC LOWERBAND =  (HIGH + LOW) / 2 - Multiplier * ATR

FINAL UPPERBAND = IF( (Current BASICUPPERBAND  < Previous FINAL UPPERBAND) and (Previous Close > Previous FINAL UPPERBAND)) THEN (Current BASIC UPPERBAND) ELSE Previous FINALUPPERBAND)

FINAL LOWERBAND = IF( (Current BASIC LOWERBAND  > Previous FINAL LOWERBAND) and (Previous Close < Previous FINAL LOWERBAND)) THEN (Current BASIC LOWERBAND) ELSE Previous FINAL LOWERBAND)

SUPERTREND = IF(Current Close <= Current FINAL UPPERBAND ) THEN Current FINAL UPPERBAND ELSE Current  FINAL LOWERBAND

When the switch of trend occurs, the indicator flips


Download supertrend indicator calculation in excel.


It is a great indicator of trend direction. Nonetheless it does give fake signals in sideways styles. so that you can use additional indicator like supertrend with ema crossover strategy and supertrend with adx strategy is to lessen the false signals.