SuperTrend+ Updated

The SuperTrend+ Updated indicator provides a comprehensive trend-following solution that enhances the classic SuperTrend logic with advanced filtering, confirmation mechanisms, and multiple averaging modes. It aims to help traders identify directional shifts and maintain positions during established trends while minimizing false signals through outlier filtering and bar-close confirmation.

Usage

The SuperTrend+ Updated tool can be used to identify bullish and bearish market phases across various timeframes.

• Trend Identification: When the price is above the green line, the trend is considered bullish. When the price is below the red line, the trend is considered bearish.
• Confirmation: The indicator features a "Closed Bars" setting, which requires the price to sustain a position beyond the trend line for a specific duration before a reversal is confirmed. This helps filter out "whipsaws" or temporary price spikes.
• Signal Interpretation: Buy and sell signals are generated when the trend direction changes. Users can toggle "Show Buy/Sell Signals" to display labels on the chart.
• Visual Warnings: The indicator uses specific color changes (e.g., yellow highlights) to signal unconfirmed trends or potential reversals, providing an early warning system before a full trend shift occurs.

Details

This script is a refactored and visually updated version of the classic SuperTrend strategy. It utilizes a custom library to calculate trend limits based on the Average True Range (ATR).

One of the key improvements is the inclusion of a "Max Deviation" filter. This allows the script to ignore extreme price movements (outliers) that might otherwise skew the ATR calculation and lead to poorly placed trend lines. Furthermore, the inclusion of multiple averaging modes—including VAWMA (Volume Adjusted Weighted Moving Average)—allows the indicator to be more responsive to volume and volatility than standard SMA-based versions.

Settings

Average True Range

• Mode: Selects the averaging function used to determine the ATR value (SMA, EMA, WMA, VWMA, VAWMA).
• Period: The number of bars used to calculate the ATR value.
• Multiplier: The coefficient used to define the distance of the trend limits from the price.
• Max Deviation: Sets the maximum allowed deviation for the true range. Values exceeding this are treated as outliers; a value of zero disables filtering.

Confirmation

• Closed Bars: Defines how many consecutive bars must close on the opposite side of the trend line before a reversal is officially confirmed.

Display

• Show Buy/Sell Signals?: Toggles the visibility of "Buy" and "Sell" labels on the chart.
• Highlighter On/Off?: Toggles the background shading between the price and the SuperTrend line.

FAQ

How do I access SuperTrend+ Updated?

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

What is the advantage of using VAWMA mode?

The VAWMA (Volume Adjusted Weighted Moving Average) mode incorporates volume data into the trend calculation, potentially providing more accurate trend lines during periods of high market activity compared to simple time-based averages.

How does the Max Deviation setting help?

The Max Deviation setting filters out anomalous price spikes. By ignoring these outliers, the ATR calculation remains more stable, preventing the SuperTrend line from widening excessively due to a single volatile event.