SuperTrendy

The SuperTrendy indicator provides a multi-layered approach to trend following by combining adaptive SuperTrend logic with volatility filtering and signal quality scoring. It aims to reduce false signals and provide traders with objective conviction metrics by analyzing efficiency and market regimes in real-time.

Usage

The indicator can be used to identify trend direction and potential entry points based on confirmed flips. Unlike standard versions, it requires price to hold on the new side of the trend line for a set number of bars before triggering a signal.

• Signal Grading: Each LONG or SHORT label includes a grade (A, B, or C). Grade A signals indicate high conviction where efficiency, volatility, and momentum align. Grade C signals suggest caution.
• Efficiency Analysis: The dashboard displays market character as TRENDING, MIXED, or CHOPPY. Users should prioritize setups when efficiency is high.
• Trend Exhaustion: A "STRETCHED" warning appears when price moves too far from the SuperTrend line (defined by the Exhaustion Threshold), signaling potential mean reversion or profit-taking opportunities.
• Trailing Stops: The dynamic line acts as an adaptive trailing stop that adjusts based on the current volatility regime.

Details

The script uses the Kaufman Efficiency Ratio (ER) as its core engine to measure how cleanly price is moving. This ratio dynamically adjusts the confirmation requirement and the trend factor.

• Adaptive Logic: In choppy markets (low ER), the indicator increases the confirmation count and widens the factor to absorb noise. In trending markets (high ER), it tightens to catch moves earlier.
• Volatility Regime: By comparing the current ATR to its 50-bar mean, the script scales the SuperTrend factor to account for volatility spikes or compressions.
• Quality Scoring: Flips are scored 0-100 based on a weighted composite of the Efficiency Ratio, volatility normality, and 5-bar momentum.

Settings

Engine

• ATR Length: Sets the lookback for volatility calculation.
• Base Factor: The multiplier for the ATR to set the distance of the line from price.
• ER Length: The lookback period for the Kaufman Efficiency Ratio.
• Confirm Bars (base): The minimum number of bars price must stay across the line to confirm a flip.
• Exhaustion Threshold: The distance in ATR multiples that triggers the "STRETCHED" status.

Visuals

• Glow: Enables a soft halo effect around the SuperTrend line that intensifies as the trend matures.
• Shading: Toggles the gradient ribbon between the price and the indicator line.
• Colour Candles: Applies trend-based coloring to price bars with intensity based on conviction.
• Flip Labels: Displays LONG/SHORT labels with quality grades and price data.
• Dashboard: Toggles the visibility of the real-time statistics panel.

Palette & Dashboard

• Bull/Bear/Neutral: Customizes colors for trend directions and neutral elements.
• Position: Adjusts the dashboard location to any corner of the chart.

FAQ

How do I access SuperTrendy?

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

What do the A, B, and C grades mean?

These grades represent the quality of a trend flip. "A" means all internal metrics (efficiency, volatility, and momentum) are in strong agreement, while "C" suggests the flip occurred under less-than-ideal market conditions.

Can I change how fast the indicator reacts?

Yes, by lowering the ATR Length or the Base Factor, the indicator will react more quickly to price changes, though this may result in more frequent signals during sideways markets.