Supertrend is constructed with two parameters, period and multiplier. The default values used are 10 for average true range or trading period and three for its multiplier.
The average true range (ATR) plays an important role in the Supertrend calculation as the indicator uses ATR to calculate its value. The ATR indicator signals the degree of price volatility.
Supertrend is a trending indicator, and like all trending indicators it works well in trending markets (i.e. in uptrends and downtrends).
The preferred charting software that we recommend to get the Supertrend indicator is BlackBox here.<< Back to Glossary Index