Supertrend Indicator Best Settings for Beginners
Introduction
The Supertrend indicator is one of the easiest tools for spotting trends and trade signals. It’s especially useful for beginners who want simple, actionable signals without complicated analysis. However, using the right settings can make a huge difference in your trading success. In this guide, we’ll explain the Supertrend indicator best settings for beginners and how you can set it up to improve your trading results.
What Is the Supertrend Indicator?
The Supertrend indicator is a trend-following technical tool based on the Average True Range (ATR) and a multiplier value. It plots a line either above or below the price to indicate trend direction:
- Below Price = Uptrend (Buy Signal)
- Above Price = Downtrend (Sell Signal)
When the price crosses the Supertrend line, it generates a trading signal.
How Does the Supertrend Indicator Work?
- The ATR measures market volatility.
- The multiplier adjusts the sensitivity of the signal.
- Together, these values determine how close or far the Supertrend line is plotted from the current price.
A tighter setting (lower ATR/multiplier) gives more signals, but also more false signals. A wider setting gives fewer but stronger signals.
Supertrend Indicator Best Settings for Beginners
If you’re just starting, you need settings that balance signal frequency and reliability. Here’s what most experts recommend:
| Setting | Value | Why It’s Good for Beginners |
|---|---|---|
| ATR Period | 10 | Good balance between fast and smooth signals |
| Multiplier | 3 | Reduces false signals; focuses on strong trends |
| Timeframes | 15-minute, 1-hour, Daily | Adaptable across day trading, swing trading, and investing |
Recommended Default Settings:
- ATR Period = 10
- Multiplier = 3
These settings help beginners by filtering out market noise while still providing timely entries and exits.
When to Adjust Supertrend Settings
- For Scalping (Quick Trades):
- ATR: 7 | Multiplier: 2.5
- More sensitive but riskier.
- For Swing Trading:
- ATR: 10 | Multiplier: 3 or 3.5
- Balances noise and strong trends.
- For Long-Term Investing:
- ATR: 14 or 21 | Multiplier: 4
- Filters small fluctuations for bigger trends.
How to Set Up the Supertrend Indicator (Step-by-Step)
- Open your charting platform (e.g., TradingView, MetaTrader, ThinkorSwim).
- Search for “Supertrend” in the indicators list.
- Apply the indicator to your preferred chart.
- Adjust the settings:
- ATR Period: 10
- Multiplier: 3
- Observe the buy/sell signals based on the Supertrend line.
Pro Tips for Beginners
- Always Combine with Other Tools:
Use RSI, MACD, or moving averages alongside Supertrend for better confirmation. - Focus on Trending Markets:
Supertrend works best during clear trends, not sideways ranges. - Use Stop Loss:
Always set a stop loss just beyond the Supertrend line to minimize risk. - Avoid Choppy Markets:
If the Supertrend keeps flipping signals too often, the market may not be trending.
Common Mistakes to Avoid
- Over-Optimizing Settings:
Keep it simple—chasing perfect settings can lead to confusion. - Ignoring Market Conditions:
Volatility can affect Supertrend signals. Adjust only if necessary. - Blindly Following Signals:
Always validate signals with basic trend confirmation (higher highs, lower lows).
Conclusion
Choosing the best Supertrend indicator settings for beginners is crucial for success. Start with an ATR of 10 and a Multiplier of 3, and practice consistently on demo accounts first. Supertrend is a fantastic tool when used correctly, offering simple, powerful trade signals that any beginner can understand and follow.
Stick to proper risk management, confirm with additional indicators, and you’ll have a strong foundation for your trading journey in 2025 and beyond.
FAQs:
- What is the best ATR and multiplier for Supertrend?
ATR 10 and Multiplier 3 are considered best for beginners. - Which timeframe is best for Supertrend?
15-minute for intraday, 1-hour for swing trading, and daily for investing. - Can I use Supertrend alone?
It’s better to combine it with other indicators like RSI or MACD. - Is Supertrend good for beginners?
Yes, it’s simple to understand and very beginner-friendly. - Can I use Supertrend for scalping?
Yes, but you’ll need faster settings like ATR 7 and Multiplier 2.5.
