TL;DR
The Supertrend indicator plots a single line on your chart that flips color when trend direction changes — green below price means bullish, red above price means bearish — using ATR to adapt the band distance to current volatility.
What Is the Supertrend Indicator?
Supertrend is a trend-following overlay developed by Olivier Seban, displayed directly on the price chart as a dynamic support or resistance line. Its defining feature is simplicity: a single line, two colors. When the line is green and plotted below price, the trend is up. When it flips to red and appears above price, the trend is down. The color flip is the signal.
Under the hood, Supertrend is built on the Average True Range (ATR), which measures recent price volatility. The indicator calculates upper and lower bands by adding or subtracting a multiplier of ATR from the mid-point of the price range — bands widen automatically in volatile conditions and tighten in calm markets.
The two user-controlled settings — ATR Period and Multiplier — govern sensitivity. A lower multiplier creates a tighter band that reacts faster but whipsaws more; a higher multiplier creates a wider band that catches only larger trends. Optimal settings vary by asset and timeframe.
Key Formula
ATR = Average True Range over N periods
Upper Band = ((High + Low) / 2) + (Multiplier × ATR)
Lower Band = ((High + Low) / 2) - (Multiplier × ATR)
Signal:
- Close above Upper Band → Trend = Bullish (line plots as support below price)
- Close below Lower Band → Trend = Bearish (line plots as resistance above price)| Setting | Default | Aggressive | Conservative |
|---|---|---|---|
| ATR Period | 10 | 7 | 14 |
| Multiplier | 3.0 | 1.5–2.0 | 3.5–4.0 |
How Quantzee Uses This
SuperTrend Pro+ runs two SuperTrends simultaneously and fires a signal only when a fast and a slow SuperTrend first agree on direction — then auto-plots a complete ATR-based trade-level ladder (Entry, TP1, TP2, TP3, and a stop at the slow line) on every confluence signal.
Full Settings Guide
This page covers the definition only. For exact ATR Period and Multiplier settings by market (crypto, forex, Gold, equities), timeframe (scalping through position trading), multi-timeframe methodology, and combination strategies, see the complete SuperTrend Indicator Best Settings & Strategy Guide 2026 — the canonical deep-dive on this indicator.
Related Quantzee Indicator
- SuperTrend Pro+ — dual-Supertrend confluence filter with auto-plotted ATR trade ladder.
Related Terms
- ATR — Average True Range
- Support and Resistance
- CPR — Central Pivot Range
- Mean Reversion
- Momentum Trading
FAQ
What does the Supertrend indicator do?
Supertrend plots a single dynamic line on the price chart that flips between green (bullish) and red (bearish) based on ATR-adapted price bands, giving traders a clear trend direction signal.
What are the best settings for the Supertrend indicator?
It depends on asset, timeframe, and regime — see the full Supertrend Settings Guide for exact recommendations by market and trading style.
Does the Supertrend indicator repaint?
The standard formula can show different historical signals depending on when you view the chart. Quantzee’s SuperTrend Pro+ uses non-repainting logic that locks signals at bar close.