SuperTrend Cloud

The SuperTrend Cloud indicator is a trend-following tool that utilizes two distinct SuperTrend calculations to create a visual cloud, helping traders identify trend direction and potential entry/exit points.

Usage

The SuperTrend Cloud is primarily used to identify the prevailing market trend and filter signals based on the confluence of two different Average True Range (ATR) based levels.

• Bullish Signal: A long signal is generated when the price closes above both SuperTrend lines, especially if it was previously below at least one of them.
• Bearish Signal: A short signal is generated when the price closes below both SuperTrend lines, especially if it was previously above at least one of them.
• The Cloud: The space between the two SuperTrend lines forms a "cloud" which acts as a dynamic support or resistance zone.

The tool also features an optional testing window and integrated risk management visuals for stop losses and take profits.

Details

This indicator implements the classic SuperTrend algorithm twice using different multipliers to establish a range. The SuperTrend calculation uses a combination of the median price (HL2) and the ATR to determine trend shifts. When the price crosses the upper or lower bands, the trend direction flips. By using two sets of parameters, this script provides a more robust "cloud" area rather than a single line, reducing whipsaws in sideways markets.

Settings

SuperTrend Configuration

• Multiplier 1: The ATR multiplier for the first SuperTrend line.
• Period 1: The lookback period for the ATR calculation of the first SuperTrend line.
• Multiplier 2: The ATR multiplier for the second SuperTrend line.
• Period 2: The lookback period for the ATR calculation of the second SuperTrend line.

Testing & Lookback

• Use Look Back Days?: Enables a specific time window for historical testing or visualization.
• Look Back Days: Sets the number of days back from the current time to apply the indicator logic if the lookback option is enabled.

Risk Management

• Use Stop Loss and Take Profit?: Toggles the visibility and calculation of exit targets.
• Take Profit (%): Sets the percentage distance from the entry price for the take profit level.
• Stop Loss (%): Sets the percentage distance from the entry price for the stop loss level.

FAQ

How do I use the SuperTrend Cloud for entries?

Entries are typically taken when the price breaks through the cloud. A close above the cloud suggests a long entry, while a close below the cloud suggests a short entry.

What do the triangles and flags represent?

Triangles represent the initial entry signals (long or short). Flags represent a take profit target being hit, and "X" shapes represent a stop loss being triggered.

How can I access SuperTrend Cloud?

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