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
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.
ALMA — Arnaud Legoux Moving Average
ALMA applies a Gaussian (bell-curve) distribution as a weight function, centred near the most recent prices, to produce a moving average that filters noise while keeping lag to a minimum. It has become a favourite on <a href="/tools/platforms/tradingview" class="text-primary hover:underline">TradingView</a> for <a href="/market/crypto" class="text-primary hover:underline">crypto</a> and <a href="/market/forex" class="text-primary hover:underline">forex</a> trend detection. Compare ALMA with other advanced moving averages like the <a href="/academy/indicators/hull-moving-average" class="text-primary hover:underline">HMA</a> in our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a> to find your optimal smoothing solution.
VWAP — Volume Weighted Average Price
VWAP calculates the average price weighted by volume throughout the trading session — it is the institutional benchmark that separates winners from losers on every intraday chart. Understanding VWAP is essential for trading <a href="/market/stocks" class="text-primary hover:underline">stocks</a> and <a href="/market/crypto" class="text-primary hover:underline">crypto</a> at the same levels the big players target. Combine VWAP with tools like the <a href="/academy/indicators/volume-profile" class="text-primary hover:underline">Volume Profile</a> for a more complete picture of institutional activity. Set it up on <a href="/tools/platforms/tradingview" class="text-primary hover:underline">TradingView</a> and pair it with your favourite momentum indicator for high-probability intraday setups.
SMMA — Smoothed Moving Average
The Smoothed Moving Average applies equal weight to all historical data rather than dropping off older values, producing an ultra-smooth line that excels at identifying the dominant long-term trend. SMMA is the smoothing method used inside the <a href="/academy/indicators/adx" class="text-primary hover:underline">ADX</a> and <a href="/academy/indicators/atr" class="text-primary hover:underline">ATR</a> calculations, making it a foundational building block in <a href="/academy/indicators" class="text-primary hover:underline">technical analysis</a>. It is best suited for <a href="/market/stocks" class="text-primary hover:underline">stock</a> and <a href="/market/forex" class="text-primary hover:underline">forex</a> markets where long-term trend clarity is prized over speed.