SuperTrend Oscillator

The SuperTrend Oscillator converts the gap between price and the SuperTrend band into a bounded oscillator on a (-100, 100) scale, normalized by the widest spread between the band's extremities. Three components stack into a MACD-like anatomy — the main oscillator, a Signal line smoothed by an adaptive filter that distorts less in trends, and a Histogram of their difference — plus on-chart symbols that grade the SuperTrend's own signals as true or false.

How to Trade the SuperTrend Oscillator?

• Main oscillator above 0: price sits above the SuperTrend — bullish posture; below 0 is the bearish mirror.
• Readings near +100 or -100: a strong trend is in force.
• Pullbacks into the 50/-50 zone: retracement territory within trending markets, while overbought and oversold extremes flag potential exit areas.
• Main and histogram signs disagree: when the main reads positive while the histogram is negative (or vice versa), upcoming SuperTrend crossovers can be disregarded as likely false.
• Cross and checkmark symbols: printed at the top for buy signals and at the bottom for sell signals to validate the previous signal, with the false-signal percentage summarized over the chart's history.

SuperTrend Oscillator Settings

• Length: the ATR period behind the SuperTrend calculation.
• Mult: the ATR multiplier.
• Smooth: smoothing applied to the histogram.
• Fixed Transparency / Show Lines and Labels: display toggles for the pane.

Frequently Asked Questions

Is it read like a MACD?

The layout rhymes — main line, signal, histogram — but the engine differs: MACD tracks the spread between two moving averages, while this oscillator tracks price's normalized distance from a volatility trailing stop, making it trend-state aware rather than purely momentum-based.

How does it help filter false signals?

Two ways. Sign disagreement between the main oscillator and histogram warns that a coming crossover lacks support, and the printed symbols plus false-signal percentage show how past SuperTrend signals actually resolved on your chart.

How is the SuperTrend Oscillator accessed?

Through the LuxAlgo Library, free of charge — and from this very page it can be run and backtested in Quant, LuxAlgo's AI.