Supertrend Scans

What is the Supertrend Indicator?

Supertrend is a trend-following indicator based on the Average True Range (ATR). It plots a band above or below price and flips direction only when price crosses the active band — giving clean, low-noise trend signals.

• Bullish Supertrend: Price is above the lower band — the band acts as a dynamic trailing support. Stay long.
• Bearish Supertrend: Price is below the upper band — the band acts as a dynamic trailing resistance. Stay short or avoid longs.
• Trend Flip (⚡): Supertrend changed direction on the current bar — the most actionable signal. A bullish flip = potential new uptrend, bearish flip = potential new downtrend.
• Dist%: How far price is from the Supertrend band. Large positive dist% (bullish) = momentum, but beware of overextension. Near 0% = price testing the band.
• Strong Buy: Bullish Supertrend + EMA 20 above EMA 50 (double confirmation). Strong Sell: Bearish Supertrend + EMA 20 below EMA 50.

Settings used

ATR Period: 7 | Multiplier: 3.0 | Timeframe: Daily. These are the original Supertrend settings from Olivier Seban, widely used by Indian traders.

Why is the Supertrend Indicator Important?

The Supertrend indicator is popular for several reasons: it is versatile across assets, provides clear trend identification, helps with risk management by acting as a dynamic stop-loss, and works across multiple timeframes. It is reliable when combined with other indicators like RSI or MACD.

Limitations of the Supertrend Indicator

• False signals: In sideways or choppy markets without a clear trend, the Supertrend can generate false signals.
• Not a stand-alone tool: Best used in combination with RSI, MACD, or ADX for confirmation.
• Lagging nature: As a trend-following indicator, it reacts to price movements rather than predicting them — entries may be slightly delayed.
• Sensitive settings: Incorrect ATR period or multiplier settings can make the indicator too slow or too noisy.

Supertrend vs ATR

ATR (Average True Range) measures market volatility — it tells you how much a stock moves on average. The Supertrend indicator uses ATR to set its band width, adjusting for current volatility. While ATR is purely a volatility measure, Supertrend uses that volatility to generate directional trend signals.

FAQs on Supertrend Scans

What is the best timeframe for the Supertrend indicator? There is no universally best timeframe — it depends on your strategy and risk tolerance. Daily charts are most commonly used for EOD scanning. Intraday traders use 15-minute or hourly charts.

How do you confirm a Supertrend signal? Use RSI above 50 (for bull signals) or below 50 (for bear signals), plus MACD histogram direction, to confirm the Supertrend signal before entering a trade.

What is the MACD with Supertrend? Both MACD and Supertrend are trend-following indicators. When both point in the same direction (both bullish or both bearish), it provides a stronger confirmation signal for the trend.

Related Tools

• Supertrend + MACD Scanner
• ADX Scans
• MA Crossover Screener
• Stock Trend Scanner