Triple Supertrend

The Triple Supertrend indicator tool utilizes three distinct Supertrend calculations to help traders filter market noise, identify robust trends, and establish more reliable stop-loss levels.

Usage

The Triple Supertrend can be used to gauge trend strength and potential market reversals. By layering three Supertrends with varying sensitivities, traders can wait for confluence between the lines before making a decision:

• Trend Confirmation: A strong bullish signal is often identified when all three Supertrend lines are green and positioned below the price. Conversely, a strong bearish signal occurs when all three lines are red and above the price.
• Filtering Volatility: The use of multiple periods and multipliers helps filter out false signals that might occur on a single Supertrend during sideways or choppy price action.
• Dynamic Support and Resistance: Each line can act as a trailing stop-loss level depending on the trader's risk tolerance, with the most conservative line (largest multiplier) acting as the ultimate trend floor/ceiling.

Details

The indicator is constructed by executing three separate Supertrend algorithms. Each Supertrend is calculated using an Average True Range (ATR) multiplied by a specific factor to create a distance from the price. The direction of each trend is determined by the price crossing over or under these calculated levels. When price closes above the upper level, a bullish trend starts; when it closes below the lower level, a bearish trend begins.

Settings

• ATR Period (1, 2, 3): Determines the lookback period used for the ATR calculation for each of the three Supertrends.
• Source (1, 2, 3): Defines the price source used for the calculation (default is HL2).
• ATR Multiplier (1, 2, 3): Adjusts the sensitivity of each Supertrend. A higher multiplier makes the indicator less sensitive to price fluctuations, while a lower multiplier makes it more reactive.

FAQ

How do I use the Triple Supertrend effectively?

Look for confluence between the three lines. Trading in the direction where two or more lines agree can help avoid "whipsaw" movements in the market.

What do the different colors mean?

Green lines represent a bullish trend state where price is trading above the calculated Supertrend level. Red lines represent a bearish trend state where price is trading below the level.

How can I access Triple Supertrend?

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