SuperTrend+

The SuperTrend+ indicator provides an enhanced version of the classic Average True Range (ATR) trailing stop, introducing advanced filtering and confirmation mechanisms to identify trend direction and potential reversals.

Usage

The SuperTrend+ can be used to identify current market trends and potential entry or exit points based on price action relative to a calculated volatility boundary. Unlike the standard version, this tool allows for confirmation bars to filter out false breakouts (noise).

Typical usage scenarios include:

• Trend Identification: When the price is above the line, the trend is considered bullish (green). When below, it is considered bearish (red).
• Signal Confirmation: Using the "Closed Bars" setting allows users to wait for multiple closes beyond the boundary before a trend change is confirmed, reducing "whipsaw" signals in ranging markets.
• Volatility Filtering: By adjusting the ATR multiplier and period, traders can tighten or loosen the trailing stop based on specific asset volatility.

Details

The indicator improves upon the traditional SuperTrend by offering various moving average types for the ATR calculation, including Volume-Adjusted WMA (VAWMA). This allows the indicator to be more responsive to volume-heavy price movements.

A core feature is the confirmation logic: if the "Closed Bars" value is greater than zero, a trend reversal only occurs if price closes outside the boundary for that specific number of bars. Note that these do not need to be consecutive. However, if price exceeds the opposite side of the boundary (e.g., a low breaking the lower band in an uptrend), a reversal can trigger immediately to preserve capital.

Settings

Average True Range

• Mode: Selects the averaging function used for the ATR calculation (SMA, EMA, WMA, VWMA, or VAWMA).
• Period: The lookback length used for the ATR calculation.
• Multiplier: The factor applied to the ATR to determine the distance of the stop line from the price.
• Max Deviation: Filters out outlier true range values. A value of zero disables this filter.

Confirmation

• Closed Bars: The number of bars that must close beyond the current trend line before a reversal is confirmed.

Display

• Show Buy/Sell Signals?: Toggles the visibility of "Buy" and "Sell" labels on the chart.
• Highlighter On/Off?: Enables or disables the background shading between the price and the trend line.

FAQ

How do I use the confirmation bars?

You can set the "Closed Bars" input to a value higher than 0. This requires the price to close on the opposite side of the line for the specified number of bars before the indicator switches trend direction, helping to avoid false signals.

What is the advantage of VAWMA mode?

VAWMA (Volume-Adjusted Weighted Moving Average) accounts for trading volume within the ATR calculation, potentially providing a more accurate reflection of volatility during high-activity periods compared to a simple SMA.

How can I access SuperTrend+?

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