Introduction
If you’ve been using the Supertrend indicator or following trading tutorials, you’ve likely come across settings like “7, 3”. But what exactly do these numbers mean, and how do they impact your trading signals? In this blog, we’ll break down what “7 3” means in Supertrend settings, and help you decide if it’s the right configuration for your trading strategy.
What Is the Supertrend Indicator?
The Supertrend indicator is a trend-following tool that signals buy or sell opportunities based on price and volatility. It plots a line above or below price:
- Below the price: Uptrend (Buy signal)
- Above the price: Downtrend (Sell signal)
It relies on two key inputs:
- ATR (Average True Range) period
- Multiplier
What Does 7 3 Mean in Supertrend Settings?
The numbers “7, 3” refer to the two adjustable parameters:
| Parameter | Value | Meaning |
|---|---|---|
| ATR Period | 7 | The number of candles used to calculate the Average True Range (volatility). |
| Multiplier | 3 | The factor used to multiply the ATR for positioning the Supertrend line. |
Explanation:
- ATR 7: This means the indicator will calculate the average true range over the last 7 candles.
- Multiplier 3: This value determines how far the Supertrend line is plotted from the current price. The higher the multiplier, the more conservative the signal.
How Do These Settings Affect Your Signals?
1. ATR Period (7):
- Shorter Period → Faster, more responsive signals
- More suited for: Intraday or short-term trading
2. Multiplier (3):
- Higher Multiplier → Fewer but more reliable signals
- Filters out noise and avoids frequent false entries
Combined Effect:
- “7, 3” is a balanced setup that:
- Reacts reasonably fast to price changes
- Avoids excessive noise
- Is ideal for beginner to intermediate intraday traders
When to Use 7, 3 Settings in Supertrend
| Use Case | Suitability |
|---|---|
| Intraday Trading | ✅ Excellent |
| Swing Trading | ✅ Good |
| Scalping | ⚠️ Too slow – consider 5, 2 |
| Long-Term Investing | ❌ Too sensitive – consider 10, 4 or higher |
Pros of Using 7, 3 in Supertrend
- Easy to follow for beginners
- Works well on popular timeframes like 15-min, 1-hour, or 4-hour charts
- Reduces false signals compared to more aggressive settings like 5, 1.5
How to Apply 7 3 Settings on TradingView or MT4
- Add the Supertrend indicator to your chart.
- Open the settings panel.
- Set:
- ATR Period = 7
- Multiplier = 3
- Click “OK” or “Apply.”
- Watch for Buy/Sell signals when price crosses the Supertrend line.
Conclusion
So, what does 7 3 mean in Supertrend settings? It simply means:
- A 7-period ATR is used to calculate market volatility.
- That value is multiplied by 3 to determine where the Supertrend line appears.
This setup offers a solid balance between signal sensitivity and reliability, especially for intraday traders and beginners. Try it out on a demo account to see how it fits your trading style!
FAQs
- Is 7,3 the best Supertrend setting?
It’s one of the best for intraday trading. Best settings vary by strategy and timeframe. - What happens if I reduce the multiplier?
You’ll get more signals, but also more false alerts. - Can I use 7,3 on any asset?
Yes, but test it—some assets may need adjustments due to volatility. - Should I combine Supertrend with other indicators?
Absolutely. Try pairing with RSI or MACD for better confirmation. - Does a higher ATR period mean more accuracy?
Not always. It means slower signals, which may reduce noise but can delay entries.