Market Pressure SuperTrend

The Market Pressure SuperTrend indicator combines classic trend-following logic with a dynamic momentum oscillator to improve entry timing and responsiveness. By adapting the ATR multiplier based on market pressure conditions, the tool identifies moments where the trend line should tighten to the price, allowing traders to stay reactive during overbought or oversold phases.

Usage

The indicator provides a visual trend-following framework that can be used for trade identification and management.

• Trend Direction: The primary trend is determined by the SuperTrend line. A green line and "Buy" label indicate a bullish regime, while a red line and "Sell" label indicate a bearish regime.
• Adaptive Sensitivity: When the internal Market Pressure Oscillator (MPO) reaches overbought or oversold levels, the script reduces the ATR multiplier. This brings the trailing stop closer to the price, allowing for tighter profit protection during momentum extremes.
• Trade Management: Integrated Take Profit (TP) and Stop Loss (SL) levels appear upon trend flips. These levels are calculated using either a fixed percentage or an ATR-based risk model, providing three distinct risk-reward targets (TP1, TP2, TP3).
• Overextension Alerts: The script monitors the distance between the price and the SuperTrend line. If the distance exceeds the user-defined ATR threshold, it highlights potential overextension, signaling a higher probability of a pullback.

Details

The core of this tool is the Market Pressure Oscillator (MPO). Unlike a standard RSI or Stochastic, the MPO calculates pressure by comparing candle body size to a moving average of body sizes, weighted by price direction.

When the MPO detects high pressure (OB/OS), the Adaptive Mode is triggered. This mode stays active for up to 200 bars or until a trend reversal occurs. The goal is to reduce the inherent lag found in traditional SuperTrend calculations by adjusting the volatility buffer (ATR multiplier) dynamically based on momentum context.

Settings

SuperTrend

• ATR Length: The lookback period for the Average True Range calculation.
• Base ATR Multiplier: The standard multiplier used to set the distance of the trend line from the price.
• OB/OS Sensitivity: Determines how much the ATR multiplier is reduced when momentum is extreme (0.0 = no reduction, 1.0 = maximum reduction).

Market Pressure Oscillator (MPO)

• MPO Length: The lookback period for calculating market pressure.
• MPO Smoothing: EMA period applied to the oscillator to reduce noise.
• Overbought/Oversold Level: Thresholds that trigger the adaptive ATR reduction.

TP/SL

• Show TP/SL Targets: Toggles the visibility of trade planning levels on the chart.
• SL = ATR × instead of %: Switches between ATR-based risk or percentage-based risk for stop loss placement.
• RR Targets (1/2/3): Customizable risk-reward ratios for the three take-profit levels.

FAQ

How do I interpret the Information Table? The table displays the current trend direction, the specific MPO value, the active momentum zone (Neutral, OB, or OS), and the current distance from the trend line in ATR units to help identify overextended moves.

What does it mean when "Adaptive Mode" is active in the table? It means the oscillator has recently hit an extreme level, and the indicator is currently using a reduced ATR multiplier to track price more closely.

How can I access Market Pressure SuperTrend? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.