Supertrend
The Supertrend is a trend-following overlay indicator that combines price movement with volatility (via the Average True Range) to create dynamic support and resistance levels. It is plotted directly on the price chart and flips between bullish and bearish states.
How it works: The Supertrend calculates upper and lower bands based on the ATR multiplied by a factor. When price closes above the upper band, the indicator flips to bullish (support line below price). When price closes below the lower band, it flips to bearish (resistance line above price).
Resources: TradingView Supertrend docs
Settings in block algo flex
| Setting | Description | Default |
|---|---|---|
| Use Super Trend? | Enable/disable the indicator | Off |
| ATR Period | Number of periods for Average True Range calculation | 10 |
| ATR Multiplier | Multiplied by ATR to set band distance from price | 3 |
| Timeframe | Timeframe for calculation | Chart |
| Buy Condition | Triggers when Supertrend flips to bullish | Crossover |
| Sell Condition | Triggers when Supertrend flips to bearish | Crossunder |
How to Interpret
- Green line below price — Bullish trend; acts as dynamic support
- Red line above price — Bearish trend; acts as dynamic resistance
- Flip from red to green — Buy signal (trend reversal to bullish)
- Flip from green to red — Sell signal (trend reversal to bearish)
Tuning the Sensitivity
- Lower ATR Multiplier (e.g., 2) — Tighter bands, more frequent signals, more sensitive to small moves
- Higher ATR Multiplier (e.g., 4-5) — Wider bands, fewer signals, only catches major trend changes
- Shorter ATR Period (e.g., 7) — More responsive to recent volatility
- Longer ATR Period (e.g., 14) — Smoother, less reactive to short-term spikes
Pro Tip: Supertrend is an excellent "set and forget" trend filter. Enable it alongside momentum indicators (RSI, Stochastic) to only take mean-reversion entries in the direction of the Supertrend — this simple combination can dramatically reduce false signals.