What Is the Supertrend Indicator? A Beginner’s Guide

Introduction
The Supertrend Indicator is a popular trend-following technical tool used by traders to identify buy or sell signals. Based on average true range (ATR), it helps highlight the current market direction and offers clear entry and exit signals. This beginner-friendly indicator is widely used in stock, forex, and crypto trading.
How the Supertrend Indicator Works
Supertrend plots a continuous line either above or below the price chart:
- If the line is below the price: It indicates a Buy Signal.
- If the line is above the price: It indicates a Sell Signal.
Supertrend uses:
- ATR (Average True Range): Measures market volatility.
- Multiplier: Adjusts sensitivity to price movement.
Why Supertrend Is Ideal for Beginners
- Easy to interpret visual signals (buy/sell).
- Minimal chart clutter — clean and simple.
- Adjustable settings for different trading styles.
Popular Platforms Where You Can Use Supertrend
- TradingView
- MetaTrader 4 (MT4)
- MetaTrader 5 (MT5)
- Upstox
- Zerodha Kite
- ThinkorSwim
(We will explain Supertrend setup on each of these platforms in upcoming articles!)
When to Use the Supertrend Indicator
- Best in strong trending markets (uptrend or downtrend).
- Less reliable during sideways or range-bound markets.
- Always confirm Supertrend signals with Volume or RSI indicators for better results.
Internal Linking Suggestion:
Link to: How to Use the Supertrend Indicator for US Stock Market Trading
FAQs
Q1. What does the Supertrend Indicator show?
It shows market trend direction using a dynamic support/resistance line.
Q2. Is Supertrend useful for intraday trading?
Yes, especially in volatile stocks and forex pairs on lower timeframes.
Q3. What are the default settings for Supertrend?
ATR period 10 and multiplier 3 are considered standard.
Q4. Can the Supertrend indicator repaint?
No, once the candle closes, the Supertrend value becomes fixed.
Q5. Which timeframe is best for Supertrend?
15-minute, 1-hour, or daily charts are commonly used depending on strategy.