Supertrend

ATR-based trailing bands that flip colour with the trend. Green line below price = uptrend; red line above price = downtrend.

Formula

Upper band = (High + Low)/2 + (mult × ATR)
Lower band = (High + Low)/2 − (mult × ATR)
Trend flips when close crosses the active band

Mechanical trend follow: long on flip up, short (or exit) on flip down. Common in intraday systems.

Choppy sessions produce whipsaw flips. In strong persistent trends the flip may not come for weeks.

Nifty 50 daily bars with Supertrend pre-loaded:

3 strategies use Supertrend: