SuperTrend
Overview
SuperTrend combines the Average True Range with a multiplier and median price to plot a single line that flips between support and resistance — green means uptrend, red means downtrend. It is a favourite overlay for trend-following trading strategies across crypto and forex due to its visual simplicity. Apply it on TradingView alongside the ADX to filter entries to only strong-trending environments.
How It Works
SuperTrend calculates upper and lower bands using ATR × multiplier (default 3) added to or subtracted from the median price (High + Low) / 2. When price closes above the upper band the indicator flips bullish; when it closes below the lower band it flips bearish. The line then acts as a trailing stop that only moves in the trend direction.
Key Signals
- Line flipping from red to green signals a new uptrend.
- Line flipping from green to red signals a new downtrend.
- The indicator line itself serves as a dynamic trailing stop-loss.
- Combine with ADX > 25 to filter out low-quality signals in ranging markets.
Common Mistakes
- Using default settings on all markets — volatile assets like crypto may need a higher multiplier.
- Trading every flip in a choppy, sideways market without trend confirmation.
- Ignoring higher-timeframe SuperTrend direction when trading lower timeframes.
More Trend Indicators
Alligator
Bill Williams' Alligator uses three smoothed moving averages displaced forward — the Jaw, Teeth, and Lips — to identify trending and sleeping market phases with an intuitive visual metaphor. When the lines intertwine the Alligator is "sleeping" (range); when they fan out it is "eating" (trending). Combine it with the <a href="/academy/indicators/awesome-oscillator" class="text-primary hover:underline">Awesome Oscillator</a> and <a href="/academy/indicators/gator-oscillator" class="text-primary hover:underline">Gator Oscillator</a> from our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a> for the complete Bill Williams trading system.
WMA — Weighted Moving Average
The Weighted Moving Average assigns linearly increasing weight to more recent prices, making it more responsive than the <a href="/academy/indicators/simple-moving-average" class="text-primary hover:underline">SMA</a> while maintaining a straightforward calculation. WMA is popular among <a href="/market/forex" class="text-primary hover:underline">forex</a> traders who need faster trend signals without the complexity of exponential smoothing. Compare it with the <a href="/academy/indicators/exponential-moving-average" class="text-primary hover:underline">EMA</a> and other moving averages in our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a> to choose the best fit for your strategy.
Exponential Moving Average (EMA)
The Exponential Moving Average gives more weight to recent prices, making it more responsive to new information than the <a href="/academy/indicators/simple-moving-average" class="text-primary hover:underline">SMA</a> while still smoothing out noise. EMA crossovers are a cornerstone of many <a href="/strategies" class="text-primary hover:underline">trading strategies</a>, from scalping to <a href="/strategies/trading-styles/swing-trading" class="text-primary hover:underline">swing trading</a>, across every asset class. Use the EMA on a professional <a href="/tools/platforms/tradingview" class="text-primary hover:underline">charting platform</a> to fine-tune pullback entries and trend-following setups. Browse our full <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a> to learn how the EMA integrates with momentum and volume tools.
Simple Moving Average (SMA)
The Simple Moving Average calculates the arithmetic mean of a security's price over a specified period, smoothing out noise and revealing the underlying trend direction. As one of the foundational tools in <a href="/academy/indicators" class="text-primary hover:underline">technical analysis</a>, the SMA helps traders identify long-term trends in <a href="/market/stocks" class="text-primary hover:underline">stocks</a>, <a href="/market/crypto" class="text-primary hover:underline">crypto</a>, and <a href="/market/forex" class="text-primary hover:underline">forex</a> markets. Pair it with the <a href="/academy/indicators/exponential-moving-average" class="text-primary hover:underline">Exponential Moving Average</a> for faster signals, and visualise both on a professional <a href="/tools/platforms/tradingview" class="text-primary hover:underline">charting platform</a> like TradingView.