Supertrend - Long & Short

The Supertrend - Long & Short indicator is a trend-following tool designed to identify potential market reversals and entry points by utilizing three distinct Supertrend calculations simultaneously.

Usage

The tool is primarily used to identify long and short entry opportunities based on the shifting direction of trend-following lines. When the price moves above a Supertrend level, the direction changes to bullish (long), and when it moves below, the direction changes to bearish (short). By using three different Supertrend periods and factors, the indicator allows traders to capture trends across various sensitivities.

• Bullish Signal: Occurs when any of the three Supertrend directions shifts from positive to negative (price moves above the line).
• Bearish Signal: Occurs when any of the three Supertrend directions shifts from negative to positive (price moves below the line).

Details

The script implements the standard Supertrend calculation, which combines the Average True Range (ATR) with a multiplier (Factor) to create dynamic support and resistance levels. This specific implementation uses a triple-layered approach:

1. Fast Supertrend: Typically uses a shorter ATR length and smaller factor for high sensitivity.
2. Medium Supertrend: Uses balanced settings for intermediate trend detection.
3. Slow Supertrend: Uses a longer ATR length and larger factor to identify the broader market regime.

The strategy enters a position whenever a direction change is detected in any of the three layers, allowing for multiple potential entry points as the trend strengthens or matures.

Settings

• Close All Position: When enabled, this will trigger a command to close all active positions.
• Check To Cancel: When enabled, this will trigger a command to cancel all pending orders.
• ATR Length (1-3): Sets the lookback period for the Average True Range calculation for each of the three Supertrend layers.
• Factor (1-3): Sets the multiplier applied to the ATR to determine the distance of the Supertrend line from the price.

FAQ

How do I use the Supertrend - Long & Short?

You can use it to identify trend reversals; green lines represent support levels in an uptrend, while red lines represent resistance levels in a downtrend.

What is the advantage of using three Supertrends?

Using three layers allows you to see different trend horizons simultaneously, helping to filter out noise or identify entries at different stages of a trend.

How can I access this tool?

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