SuperTrend is built on two inputs: a multiplier and an ATR (Average True Range) period, typically defaulting to a multiplier of 3 and a 10-period ATR. The indicator plots a dynamic line above or below price — when the line is below price and green, the trend is bullish; when it is above price and red, the trend is bearish. The line flips sides when price closes on the other side of it, triggering a trend change signal. SuperTrend is popular because it simplifies trend identification into a binary on/off state and works across multiple timeframes. Its main weakness is that it can whipsaw repeatedly in sideways, low-ATR environments where trend changes are frequent and short-lived.
