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Supertrend: the easiest trend-following indicator

One ATR-based line that flips colour when the trend changes: settings, signals and how to avoid the chop.

What Supertrend is

Supertrend draws a line below price in an uptrend and above price in a downtrend. Its distance from price is ATR times a multiplier. When price closes through the line, it flips.

On TradingViewSupertrend (ATR 10, factor 3)
Higher factorFewer signals, less noise, later entries
Lower factorMore signals, more sensitive, more noise

How to trade it

  1. Trade only in the direction of the higher-timeframe Supertrend (green on H4 means look only for buys on H1).
  2. Enter when the lower-timeframe Supertrend flips to the same colour, or when price retests the line and bounces.
  3. Use the Supertrend line itself as a trailing stop.
  4. Exit when a candle closes through the line.
Watch outIn sideways markets Supertrend flips constantly and loses many small trades. Add ADX above 20–25 as a filter.
TipSupertrend makes an excellent trailing stop for trades you entered with another method.

Try it on a chart

Educational content only, not investment advice. Practise on a demo account before using real money.