Supertrend Bands

The Supertrend Bands indicator provides a comprehensive trend-following overlay that utilizes four distinct Supertrend levels to visualize trend strength and identify significant support and resistance zones.

Usage

The indicator can be used to gauge the maturity and strength of a market trend. By default, it displays four bands ranging from the fastest (Band 1) to the slowest (Band 4):

• Trend Identification: Band 4 acts as the primary trend filter. When price is above Band 4, the outlook is bullish; when below, it is bearish.
• Trend Strength: The trend is considered strongest when price is positioned beyond Band 1. As price retraces through the bands (1 toward 4), the trend is viewed as weakening.
• Support & Resistance: The bands serve as dynamic levels. Band 4 typically provides the most significant support or resistance, where a breakout often signals a complete trend reversal.
• Visual Customization: Users can choose to display all bands for a complete "cloud" effect or toggle specific bands off to reduce noise. For example, using only the two slowest bands provides a cleaner view of the macro trend, while using only the fastest bands highlights short-term momentum.

Details

The indicator is based on the standard Supertrend calculation, which uses the Average True Range (ATR) to account for market volatility. By layering multiple Supertrends with increasing multipliers, the tool creates a tiered "band" system.

A unique feature is the "Remove Anti-trend" logic. When enabled, it filters out bearish resistance bands during an established uptrend and bullish support bands during a downtrend, ensuring the chart remains focused on the prevailing market direction.

Settings

• Indicator Timeframe: Allows the calculation of bands based on higher timeframes (e.g., 1H, 4H, 1D) regardless of the current chart resolution.
• Fills: Toggles the background shading between bands and the price.
• Remove Anti-trend: When enabled, removes counter-trend bands based on the position of price relative to Band 4.
• Band 1-4 (Toggle/Length/Mult): Individual controls for each of the four Supertrends. Each allows you to set the ATR lookback period and the multiplier.
• Bar Colors: Enables thematic coloring of price bars based on their position within the tiered band system to signify trend intensity.

FAQ

How do I use the "Remove Anti-trend" feature?

This feature simplifies the chart by hiding resistance levels when the price is in a macro uptrend (above Band 4) and hiding support levels when in a macro downtrend.

What do the different bar colors represent?

The bar colors are a visual representation of trend strength. The most vibrant colors indicate the price is trending beyond the fastest band, while fading colors indicate the price is deep within the bands or near the primary trend baseline.

How can I access Supertrend Bands?

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