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HyperTrend

By LuxAlgoJul 27, 2023

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HyperTrend estimates the underlying linear trend of price in real time and builds a channel around it, with extremities that behave as support and resistance. The estimate carries no backpainting or repainting, so what you see at the live edge is what history keeps. Slope direction doubles as a trend regime read (average sloping up, uptrend; sloping down, downtrend) while the channel average serves as an unbiased running estimate of where the trend is heading, free of lookahead.

How to Trade the HyperTrend?

  • Average slope: upward for bullish conditions, downward for bearish, the primary directional read.
  • Upper extremity: acts as resistance; candle wicks interacting with it can mark timely retracements or reversals.
  • Lower extremity: acts as support, read the same way in mirror.
  • Channel average breaks: when a repeatedly tested average finally gives way, treat it as a strong reversal cue within this framework.

The channel average is less precise than a full regression fit, but that is the trade-off for having it live and unbiased. It still serves well as a moving support or resistance reference. Raising the Multiplicative Factor makes channels persist longer for position-scale analysis, while the slope input reshapes their steepness for different markets.

HyperTrend Settings

  • Multiplicative Factor: the deviation allowed from the average before a new channel forms. Higher values mean fewer, longer-lived channels.
  • Slope: sets the steepness of the channel lines; larger values flatten them.
  • Width %: the channel's width percentage. Lower values draw tighter channels.

Frequently Asked Questions

Free indicator

Get free access to this indicator on the platforms below.

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NinjaTrader
MetaTrader 4/5
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