Supertrend
Creates a directional state from ATR-based bands.
Start with the input, not the story.
Trend state relative to volatility-adjusted trailing bands.
The precomputed trailing line follows an ATR-based Supertrend through a rise, reversal and choppy recovery. Implementations differ in median-price baseline, ATR smoothing and band-carry rules, so check the source before trying to match exact values.
Stacking several Supertrends may look reassuring, but every version still comes from the same price and ATR inputs.How traders commonly use Supertrend
Supertrend is often researched as a trend eligibility filter or as a completed-candle trailing rule.
Turn ATR-based trailing bands into a simple directional state and exit reference.
Keep this job separate from entry timing, stop placement and position size.
A useful counterexample
During sideways trade it can change state repeatedly, while several parameter variants remain highly dependent on the same price data.
Structure for the setup, Supertrend for state, risk tool for exposure
Each part has a different job. If two tools answer the same question, remove one and compare the result.
Defines the setup, location and initial invalidation.
Labels volatility-adjusted trend state or trails an exit.
Bounds exposure from the chosen stop distance.
Follow the same order every time
- Document the exact Supertrend implementation, period and multiplier.
- Wait for the candle to complete before accepting a state change.
- Mark structure and initial invalidation without referring to Supertrend.
- Choose in advance whether Supertrend is a filter or an exit, not both.
- Compare the base structural method with and without the Supertrend rule.
The indicator is one part of the method
These strategy pages show the market conditions, entry, stop and exit around the indicator.
Trend pullback
Research whether shallow retracements inside an objective trend resume in its direction.
- ENTRY
- After eligibility is true, place a market order at the next H1 open when the signal candle closes beyond the highest high of the previous two pullback bars for a long, or below their lowest low for a short.
- STOP
- Place the stop 0.25 × ATR(14) beyond the pullback extreme. Size so entry-to-stop risk equals 0.50% of demo equity, rounded down to 0.01 lot; never widen the stop.
- EXIT
- Place a fixed target at 2R immediately after entry. If neither stop nor target trades first, exit at market after 24 completed H1 bars.
EMA and ADX trend filter
Combines direction from an EMA with a non-directional trend-strength filter.
- ENTRY
- Enter at the next H4 open after the eligible boundary close.
- STOP
- Stop 1.5 × ATR(14) from fill. Risk 0.50% equity and round down to 0.01 lot.
- EXIT
- Take profit at 2R. Exit early at next open after a completed close crosses EMA(50) against the position.
Volatility-targeted momentum
Scales a simple momentum signal so higher-volatility pairs do not dominate risk.
- ENTRY
- At Monday 00:00 UTC, rebalance selected pairs to inverse-60-day-volatility weights, normalised to 10% ex-ante portfolio volatility and then reduced proportionally to satisfy every cap.
- STOP
- No chart stop. Cut a pair to zero at the next daily open if its one-day loss exceeds 3 × its 60-day daily volatility; suspend all new entries for one week if estimated portfolio volatility exceeds 15%.
- EXIT
- At each weekly rebalance, exit a pair that leaves its top/bottom-two rank, loses the 2% absolute-score threshold or breaches a risk rule; otherwise resize to the new capped target weight.
Set up Supertrend on your platform
Match the lesson's period, price input, smoothing and candle timing. Similar names can still produce different values across feeds and platforms.
MT4
Custom code neededA faithful on-chart version needs an MQL4 implementation. Check the source note below when WickAtlas provides one.
MT4 technical analysisWickAtlas MT4 setup guideMT5
Custom code neededA faithful on-chart version needs an MQL5 implementation. Check the download note below before assuming WickAtlas provides one.
MT4 and MT5 comparisonWickAtlas MT5 setup guideTradingView
Built inAvailable in the standard TradingView indicator library. Names and default settings can differ.
TradingView indicatorsWickAtlas TradingView guide“Built in” means the standard platform library contains the underlying indicator. It does not mean its defaults or calculation match every third-party version. Compare the platforms.
Plain-language formula
The same indicator can look slightly different across platforms because the price input, smoothing and rounding may change. Note your settings before comparing two charts.
Where it may help
Transparent directional filters and trailing exits.
Where it struggles
Sideways markets and settings selected from the same sample being judged.
What to pair it with
Pair it with something that answers a different question, such as volatility or market direction. Try the indicator on its own before adding more tools.
The shortcut to avoid
Stacking several Supertrends and mistaking parameter agreement for independent evidence.
Try this on a chart
Freeze the period and multiplier before an out-of-sample comparison.