Double SuperTrend

The Double SuperTrend indicator provides a dual-layered trend analysis system designed to filter out countertrend signals and market noise by requiring alignment between minor and major trend structures.

Usage

The tool operates by plotting two distinct SuperTrend lines on the chart: a Minor Trend and a Major Trend. The primary goal is to use the Major Trend as a directional filter. When the Major Trend is bullish, users typically look for the Minor Trend to flip from bearish to bullish to generate a "Buy" signal. Conversely, when the Major Trend is bearish, a "Sell" signal is generated when the Minor Trend flips from bullish to bearish.

Examples of usage include:

• Trend Following: Executing trades only when the Minor Trend aligns with the Major Trend direction.
• Dip/Bounce Trading: The indicator identifies "Buy Dip" or "Sell Bounce" scenarios where the Major Trend remains intact but the Minor Trend briefly breaks, signaling a potential retracement entry.
• Risk Management: The Major Trend line can serve as a trailing stop-loss level for long-term positions.

Details

The indicator calculates two separate SuperTrend values using the Average True Range (ATR) and a multiplier.

• Minor Trend: Designed to be more sensitive to immediate price action, identifying shorter-term shifts.
• Major Trend: Uses a larger ATR period and multiplier to smooth out price action and establish the long-term market bias. Signals are filtered internally so that labels only appear when the specific conditions (alignment or dip/bounce) are met. Users can also toggle between two ATR calculation methods: the standard ta.atr or a simple moving average of the true range.

Settings

General Settings

• Source: Determines the price data used for the SuperTrend calculations (e.g., HL2, Close).
• Show Buy/Sell Signals?: Toggles the visibility of the "BUY", "SELL", "BUY DIP", and "SELL BOUNCE" labels.

Minor Trend Settings

• ATR Period Minor Trend: The lookback period used for the ATR calculation of the minor trend.
• ATR Multiplier Minor Trend: The factor by which the ATR is multiplied to set the distance of the trend line from the price.
• Change ATR Calculation Method Minor Trend?: Switches between standard ATR and an SMA-based ATR for the minor calculation.

Major Trend Settings

• ATR Period Major Trend: The lookback period used for the ATR calculation of the major trend (typically higher than the minor).
• ATR Multiplier Major Trend: The factor used for the major trend line distance (typically higher than the minor).
• Change ATR Calculation Method Major Trend?: Switches between standard ATR and an SMA-based ATR for the major calculation.

FAQ

How do I access the Double SuperTrend?

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

What is the difference between a Buy signal and a Buy Dip signal?

A Buy signal occurs when both the Minor and Major trends align bullishly. A Buy Dip signal occurs when the Major trend is bullish, but the Minor trend briefly turns bearish, suggesting a potential entry on a pullback.

Can I customize the sensitivity of the signals?

Yes, by adjusting the ATR Period and Multiplier settings for both the Minor and Major trends, you can make the indicator more or less responsive to price volatility.