3 min
11 juil. 2024
Indicateurs
The SuperTrend Indicator
The SuperTrend Indicator
The SuperTrend indicator is a technical tool used to identify the dominant trend of a financial asset. One of the advantages of this indicator is that it takes market volatility into account through the ATR (Average True Range). Simplicity is one of the major strengths of the SuperTrend. It only requires the period used to calculate the indicator and the multiplier applied to the ATR in the SuperTrend calculation. Due to its simplicity, it is often combined with other indicators to enhance the quality of signals
Lucas Inglese
Lucas Inglese
Trading instructor
The SuperTrend Block Configuration
On BullTrading, you have many options to configure each block to make it unique. In this block, you can set the time unit, period used, and more.
Time Unit
Since BullTrading allows you to create a multi-timeframe strategy, you can choose the time period for calculating this indicator. You have two options:
Default: If you leave it as Default, the time unit will vary depending on the time horizon used in the backtest.
15m, 30m, 1d, etc.: Choosing a specific time unit means this unit will be used regardless of the time unit selected for backtesting your strategy.
TIPS: If you’re a beginner, it’s recommended to leave the time unit on Default.
Period SuperTrend
The second parameter is the period used to calculate the SuperTrend. To choose it, simply replace the value and enter the number of periods you wish to use.
TIPS: Only whole numbers (no decimals) are allowed.
Multiplier (ATR Multiplier)
The multiplier affects the indicator's sensitivity; the lower the multiplier, the more sensitive the indicator becomes. The default value is usually around 2 or 3, depending on the strategy. If the value exceeds 3, the indicator becomes less sensitive to variations, which may be useful depending on the desired strategy.
Signal Type
This parameter has two options: CrossOver and Position. Here’s the difference:
CrossOver: If you select CrossOver for the signal type, this block will be validated only when the signal shifts from Bearish to Bullish or vice versa.
Position: With this option, the block will be validated whenever it is in the selected Trigger Type (Bearish or Bullish).
TIPS: The CrossOver parameter is much more restrictive, making it useful when combining only one or two indicators. However, too many blocks set to CrossOver can significantly reduce the number of trades in your strategy, as it requires, for example, a crossover between the two MAs + a crossover with the RSI 70 threshold + a crossover in the Vortex indicator.
So, if you’re a beginner, avoid setting more than one or two blocks to CrossOver when combining multiple indicator blocks.
Trigger Type
This parameter has two options: Bullish or Bearish. Here’s the difference:
Bullish: If the trigger type is set to Bullish, the block is validated if the SuperTrend is in a bullish position.
Bearish: If the trigger type is set to Bearish, the block is validated if the SuperTrend is in a bearish position.
The SuperTrend Block Configuration
On BullTrading, you have many options to configure each block to make it unique. In this block, you can set the time unit, period used, and more.
Time Unit
Since BullTrading allows you to create a multi-timeframe strategy, you can choose the time period for calculating this indicator. You have two options:
Default: If you leave it as Default, the time unit will vary depending on the time horizon used in the backtest.
15m, 30m, 1d, etc.: Choosing a specific time unit means this unit will be used regardless of the time unit selected for backtesting your strategy.
TIPS: If you’re a beginner, it’s recommended to leave the time unit on Default.
Period SuperTrend
The second parameter is the period used to calculate the SuperTrend. To choose it, simply replace the value and enter the number of periods you wish to use.
TIPS: Only whole numbers (no decimals) are allowed.
Multiplier (ATR Multiplier)
The multiplier affects the indicator's sensitivity; the lower the multiplier, the more sensitive the indicator becomes. The default value is usually around 2 or 3, depending on the strategy. If the value exceeds 3, the indicator becomes less sensitive to variations, which may be useful depending on the desired strategy.
Signal Type
This parameter has two options: CrossOver and Position. Here’s the difference:
CrossOver: If you select CrossOver for the signal type, this block will be validated only when the signal shifts from Bearish to Bullish or vice versa.
Position: With this option, the block will be validated whenever it is in the selected Trigger Type (Bearish or Bullish).
TIPS: The CrossOver parameter is much more restrictive, making it useful when combining only one or two indicators. However, too many blocks set to CrossOver can significantly reduce the number of trades in your strategy, as it requires, for example, a crossover between the two MAs + a crossover with the RSI 70 threshold + a crossover in the Vortex indicator.
So, if you’re a beginner, avoid setting more than one or two blocks to CrossOver when combining multiple indicator blocks.
Trigger Type
This parameter has two options: Bullish or Bearish. Here’s the difference:
Bullish: If the trigger type is set to Bullish, the block is validated if the SuperTrend is in a bullish position.
Bearish: If the trigger type is set to Bearish, the block is validated if the SuperTrend is in a bearish position.
The SuperTrend Block Configuration
On BullTrading, you have many options to configure each block to make it unique. In this block, you can set the time unit, period used, and more.
Time Unit
Since BullTrading allows you to create a multi-timeframe strategy, you can choose the time period for calculating this indicator. You have two options:
Default: If you leave it as Default, the time unit will vary depending on the time horizon used in the backtest.
15m, 30m, 1d, etc.: Choosing a specific time unit means this unit will be used regardless of the time unit selected for backtesting your strategy.
TIPS: If you’re a beginner, it’s recommended to leave the time unit on Default.
Period SuperTrend
The second parameter is the period used to calculate the SuperTrend. To choose it, simply replace the value and enter the number of periods you wish to use.
TIPS: Only whole numbers (no decimals) are allowed.
Multiplier (ATR Multiplier)
The multiplier affects the indicator's sensitivity; the lower the multiplier, the more sensitive the indicator becomes. The default value is usually around 2 or 3, depending on the strategy. If the value exceeds 3, the indicator becomes less sensitive to variations, which may be useful depending on the desired strategy.
Signal Type
This parameter has two options: CrossOver and Position. Here’s the difference:
CrossOver: If you select CrossOver for the signal type, this block will be validated only when the signal shifts from Bearish to Bullish or vice versa.
Position: With this option, the block will be validated whenever it is in the selected Trigger Type (Bearish or Bullish).
TIPS: The CrossOver parameter is much more restrictive, making it useful when combining only one or two indicators. However, too many blocks set to CrossOver can significantly reduce the number of trades in your strategy, as it requires, for example, a crossover between the two MAs + a crossover with the RSI 70 threshold + a crossover in the Vortex indicator.
So, if you’re a beginner, avoid setting more than one or two blocks to CrossOver when combining multiple indicator blocks.
Trigger Type
This parameter has two options: Bullish or Bearish. Here’s the difference:
Bullish: If the trigger type is set to Bullish, the block is validated if the SuperTrend is in a bullish position.
Bearish: If the trigger type is set to Bearish, the block is validated if the SuperTrend is in a bearish position.
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