Supertrend

Glossary · Technical Analysis

Supertrend is a trend-following indicator that plots a line above or below price using ATR-based bands — typically 10-period ATR multiplied by 3. The line flips sides when price closes through it, sitting below price in uptrends and above price in downtrends, giving one-glance trend direction and a ready-made trailing stop level.

"Line under price you ride, line over price you step aside — just don't run it in chop or it'll flip you to death."

The default (10, 3) setting takes the 10-period ATR, multiplies it by 3, and offsets the band from the candle's mid-price; a close through the band flips the line to the other side. Because the buffer is ATR-based, it widens automatically in volatile tape — the stop breathes with the market instead of sitting at a fixed percent. That's what makes it a legitimate trailing stop and not just a colour scheme.

The honest economics: Supertrend loses small many times in chop and wins big a few times in trends. The flip-flops in a sideways week are the fee; the trend rides are the payout. Retail usually quits after four straight whipsaw losses — right before the trend that would have paid for all of them. If chop is killing you, go up a timeframe or widen the multiplier. The fix is never 'take the flips faster'.

Signals scored with SuperTrend, per timeframe

Related jargon

Questions

What is Supertrend in crypto trading?

Supertrend is a trend-following indicator that plots a line above or below price using ATR-based bands — typically 10-period ATR multiplied by 3. The line flips sides when price closes through it, sitting below price in uptrends and above price in downtrends, giving one-glance trend direction and a ready-made trailing stop level.

How would a trader say it?

Line under price you ride, line over price you step aside — just don't run it in chop or it'll flip you to death.

Part of the Crypto Jargon glossary — every term, decoded the way a trader would say it.

Crypto Jargon

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