Supertrend
Trend
- What it shows
Supertrend uses Average True Range to place a line above or below price. The line changes side when the reversal condition is met.
- How it is built
The line is placed a multiple of the Average True Range away from the middle of each bar and only moves in the trend's direction. It flips when the close crosses it.
- How to use it
- Green below price: uptrend. Red above price: downtrend.
- A flip of colour marks a change of trend, often after the move has started.
- Works best in trends. In a range it flips often.
Related indicators
Ichimoku CloudParabolic SARAverage Directional IndexDirectional Movement Index