Online Trading Starts Here
EN /interesting-articles/best-forex-indicators-for-successful-trading/how-to-use-supertrend/settings-and-strategies/
AR Arabic
AZ Azerbaijan
CS Czech
DA Danish
DE Deutsche
EL Greek
EN English
ES Spanish
ET Estonian
FI Finnish
FR French
HE Hebrew
HI Hindi
HU Hungarian
HY Armenian
IND Indonesian
IT Italian
JA Japan
KK Kazakh
KM Khmer
KO Korean
MS Melayu
NB Norwegian
NL Dutch
PL Polish
PT Portuguese
RO Romanian
... Русский
SQ Albanian
SV Swedish
TG Tajik
TH Thai
TL Tagalog
TR Turkish
UA Ukrainian
UR Urdu
UZ Uzbek
VI Vietnamese
ZH Chinese
Menu
Advertiser Disclosure

Supertrend Indicator: Settings And Strategies To Use

Andrey Mastykin
Written by:
Andrey Mastykin
Dan Blystone
Reviewed by:
Dan Blystone
Chinmay Soni
Fact-checked by:
Chinmay Soni
Updated:
June 08, 2026

Editorial Note: While we adhere to strict Editorial Integrity, this post may contain references to products from our partners. Here's an explanation for How We Make Money. None of the data and information on this webpage constitutes investment advice according to our Disclaimer.

Supertrend settings and strategies:

  • Common settings: Multiplier (e.g., 3) and ATR Period (e.g., 10)

  • Adjust settings: based on volatility; higher multiplier reduces false signals

  • Strategies: Trend Following, combining with indicators like RSI or moving averages, using as a trailing stop-loss.

The Supertrend indicator is a powerful trend-following tool built on moving averages and volatility adjustments. It works effectively when combined with other indicators such as Parabolic SAR and MACD, making it a favored choice for long-term trading strategies.

Traders often seek an indicator that can precisely track trends, minimize false signals, and identify ideal entry and exit points. While no single tool can achieve this flawlessly, the Supertrend indicator is highly dependable for those who understand how to use it well.

This guide provides an in-depth look at the Supertrend indicator, offering insights on how it works, its calculation formula, and the best settings for platforms like MetaTrader 4. It also includes practical trading strategies and tips for beginners to confidently add the Supertrend to their trading toolkit.

Supertrend settings for MetaTrader 4 (MT4)

The Supertrend indicator is a widely used tool in technical analysis, designed to assist traders in identifying market trends and spotting potential entry and exit opportunities. It combines the principles of moving averages with volatility measurements to generate actionable signals. The indicator relies on the Average True Range (ATR) to measure market volatility and uses this data to plot a line either above or below the price. A green line below the price indicates an uptrend, while a red line above suggests a downtrend. This visually intuitive system enables traders to quickly analyze market conditions and make strategic decisions.

Supertrend indicatorSupertrend indicator

For traders using MetaTrader 4 (MT4), the Supertrend indicator is particularly popular for identifying trends and reversals. While MT4 does not include the indicator as a standard feature, it can be easily added by downloading and installing a custom file tailored for the platform.

Installing the Supertrend Indicator on MT4

  1. Download the indicator. Obtain the Supertrend indicator file compatible with MT4 from a reputable source.

  2. Access MT4's data folder.

    • Open MT4.

    • Click on “File” in the top menu.

    • Select “Open Data Folder”.

  3. Navigate to the indicators folder:

    • In the data folder, open the “MQL4” directory.

    • Then, open the “Indicators” folder.

  4. Install the indicator:

    • Copy the downloaded Supertrend indicator file into the 'Indicators' folder.

  5. Restart MT4: Close and reopen the MT4 platform to load the new indicator.

  6. Add the indicator to a chart:

    • Open a chart for the desired trading instrument.

    • Click on “Insert” in the top menu.

    • Hover over “Indicators”, then “Custom”, and select “Supertrend”.

Configuring supertrend settings

The Supertrend indicator in MT4 typically has two main parameters:

  1. ATR period: This defines the number of periods used to calculate the Average True Range (ATR), which measures market volatility. A common default setting is 10 periods.

  2. Multiplier: This value determines the distance of the Supertrend line from the price, affecting its sensitivity. A standard default is 3.0.

Adjusting settings

  • Increasing the ATR Period: A higher period (e.g., 14) makes the indicator less sensitive, reducing false signals but potentially delaying trend identification.

  • Decreasing the ATR Period: A lower period (e.g., 7) increases sensitivity, providing earlier signals but with a higher chance of false positives.

  • Adjusting the Multiplier: A higher multiplier (e.g., 4.0) places the Supertrend line further from the price, filtering out minor fluctuations. A lower multiplier (e.g., 2.0) brings the line closer, capturing more price movements but increasing the risk of false signals.

Top strategies for using the supertrend indicator

The Supertrend indicator is a practical tool for traders to identify trends and entry and exit points. Here are some strategies for using it effectively.

1. Trend following strategy

  • Buy signal. When the Supertrend line shifts below the price and turns green, it suggests an uptrend and a potential buy opportunity.

  • Sell signal. If the Supertrend line moves above the price and turns red, it indicates a downtrend, signaling a sell.

2. Combining with other indicators

Using supertrend with other indicatorsUsing supertrend with other indicators

  • Moving averages. Using moving averages alongside the Supertrend helps confirm trends. If both show an uptrend, the signal strengthens.

  • Relative strength index (RSI). An oversold RSI reading paired with a Supertrend buy signal can indicate a strong buying opportunity.

3. Adjusting settings for different timeframes

  • Short-term trading. Lowering the ATR period and multiplier makes the indicator more responsive, fitting for day trading.

  • Long-term trading. A higher ATR period and larger multiplier filter out noise, better suited for swing or position trading.

4. Using as a trailing stop-loss

  • For long positions. Set the stop-loss just below the Supertrend line and move it up as the trend progresses.

  • For short positions. Position the stop-loss above the Supertrend line and lower it as the price drops.

5. Spotting breakouts

  • During consolidation. The Supertrend line stays close to the price in low volatility phases.

  • Breakout signal. A price move that causes the line to flip signals the start of a new trend, providing an entry point.

Best platforms for trading with the supertrend indicator

Selecting a suitable trading platform is essential for maximizing the potential of the Supertrend indicator. The ideal platforms provide features such as fast execution, customizable indicator settings, and compatibility with advanced analytical tools. Popular platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader are often used due to their powerful functionalities, including support for various technical indicators like the Supertrend. These platforms also offer competitive spreads, diverse asset access, and reliable performance for trend-based strategies.

Best platforms for trading with supertrend indicator
Demo Min. deposit, $ Min Spread EUR/USD, pips Max Spread EUR/USD, pips TradingView MT4 MT5 cTrader Open an account

Trading.com USA

Yes 50 0.9 No Yes No Yes No Go to broker
Your capital is at risk.

Plus500

Yes 100 0.5 0.9 Yes No No No Go to broker
80% of retail CFD accounts lose money.

OANDA

Yes No 0.1 0.5 Yes Yes Yes No Go to broker
Your capital is at risk.

FOREX.com

Yes 100 0.7 1.2 Yes Yes Yes No Study review

Venom by Cobra Trading

Yes 5000 0.25 0.5 No No No No Study review

Best assets for trading with the supertrend indicator

The Supertrend works best with assets that exhibit strong, directional trends. Suitable instruments include:

  1. Major currency pairs: Pairs like EUR/USD and USD/JPY often display clear uptrends and downtrends, making them ideal for trend-based strategies.

  2. Commodities: Assets such as gold, silver, and oil frequently trend in response to global market dynamics.

  3. Stock indices: Indices like those representing major economies or sectors trend reliably over various timeframes.

  4. Cryptocurrencies: High-volatility coins like Bitcoin and Ethereum offer strong trend signals suitable for the Supertrend indicator.

Assets to avoid: Instruments with limited or sideways price movement, such as some minor currency pairs or illiquid small-cap stocks, may produce misleading signals. Bonds and other fixed-income assets typically lack the volatility required for effective Supertrend use.

Tips for beginners using the supertrend indicator

To truly harness the power of the Supertrend indicator, consider integrating it with Heikin Ashi candlestick charts. Heikin Ashi charts smooth out price data, filtering out market noise and providing a clearer view of trends. When combined with the Supertrend indicator, this approach can enhance the accuracy of trend identification and reduce false signals. For instance, a study tested over 4,000 Supertrend trades and found that using Heikin Ashi charts improved the performance of most indicators, including Supertrend.

Another advanced strategy involves optimizing the Supertrend's parameters using Bayesian optimization techniques. Instead of relying on default settings, this method systematically searches for the most effective Average True Range (ATR) period and multiplier for a specific asset or market condition. Research has shown that applying Bayesian optimization to the Supertrend indicator's parameters can unlock profit potential by maximizing returns across diverse stock datasets. By tailoring the indicator's settings through data-driven methods, traders can achieve a more responsive and accurate tool, leading to better-informed trading decisions.

Pros and cons of the supertrend indicator

  • Pros
  • Cons

  • Provides highly accurate signals in trending markets.

  • Available on most trading platforms and is user-friendly, making it suitable for beginners.

  • Helps intraday traders make quick and informed decisions.

  • Not ideal for non-trending or choppy markets.

  • Requires pairing with other indicators for filtered and reliable signals.

  • Can lag during rapid market changes, capturing trends only after they occur.

Refine your use of the Supertrend indicator by adapting its settings to align with current market conditions.

Oleg Tkachenko
Oleg Tkachenko Editor at Cryptocurrency & Blockchain Department

Refine your use of the Supertrend indicator by adapting its settings to align with current market conditions. Instead of sticking with one set of ATR periods and multipliers, adjust them based on how volatile the market is and the volume of trades. This lets the indicator respond better to market changes, cutting down on misleading signals during flat markets and catching strong trends when volatility picks up. This simple tweak can help you sharpen your trading strategy, making your entries and exits more accurate.

Another advanced move is pairing the Supertrend indicator with harmonic patterns. When a harmonic pattern, like a Gartley or Bat, matches up with a Supertrend signal, it can be a solid sign that the trend might continue or reverse. Combining these setups means you're not relying on one indicator alone, but confirming your trades with a mix of signals, which can help manage risk and improve trade quality.

Conclusion

Mastering the Supertrend indicator lies in understanding its core settings and adapting them to different market conditions. By leveraging its clear buy and sell signals, traders can enhance their strategies for trending markets, as shown when using tighter ATR multipliers for volatile assets or wider settings for stable trends. Consistently testing and fine-tuning these parameters is essential to minimize false signals and maximize profits. Ultimately, the Supertrend stands out as a straightforward yet powerful tool, affirming that simplicity, when skillfully applied, can unlock substantial trading success.

FAQs

What are best practices for combining the Supertrend Indicator with Heikin Ashi candlestick charts?

Using the Supertrend Indicator alongside Heikin Ashi candlestick charts can help filter out market noise and provide a clearer view of trends. This combination improves the accuracy of trend signals, as Heikin Ashi smooths price data, reducing false signals and making it easier to identify sustained movements.

How can Bayesian optimization enhance Supertrend Indicator performance?

Bayesian optimization systematically searches for the most effective ATR period and multiplier values for the Supertrend Indicator based on historical data. This data-driven approach allows traders to tailor settings for specific assets or conditions, leading to improved responsiveness and more accurate trading signals.

Why is it important to adjust Supertrend Indicator settings according to market volatility?

Adjusting the Supertrend's ATR period and multiplier to match current market volatility helps the indicator filter out noise during calm periods and react quickly when the market becomes more volatile. This reduces false signals in flat markets and improves trend capture during strong moves.

What types of trading assets are less suitable for the Supertrend Indicator, and why?

Assets with low volatility or persistent sideways movement, such as some minor currency pairs, illiquid stocks, and most fixed-income securities, are less suitable for Supertrend. These instruments often lack the directional trends required for reliable indicator signals, increasing the likelihood of false entries or exits.

Editors' Top Picks and Insights

All news
Best Indicators For Forex Scalping
Andrey Mastykin
21 hours ago
Best Indicators For Effective 1-Minute Scalping Strategy
Maxim Nechiporenko
21 hours ago
Best Day Trading Indicators You Should Know
Oleg Tkachenko
21 hours ago
Best Indicators To Use With RSI
Maxim Nechiporenko
21 hours ago
Best Indicators For Support And Resistance
Alamin Morshed
21 hours ago

Team that worked on the article

Andrey Mastykin
Andrey Mastykin
Head of Company Reviews and Ratings

Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform.

Learn about our editorial policies
Dan Blystone
Dan Blystone
Senior English Editor

Dan Blystone began his trading career in 1998 as an arbitrage clerk on the floor of the Chicago Mercantile Exchange (CME). He later traded bond and Eurex futures at proprietary firms such as Altea Trading, gaining valuable experience in high-frequency trading and risk management.

Chinmay Soni
Chinmay Soni
Head of Fact-Checking Department

Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data.

Glossary for novice traders
Forex indicators

Forex indicators are tools used by traders to analyze market data, often based on technical and/or fundamental factors, to make informed trading decisions.

Ethereum

Ethereum is a decentralized blockchain platform and cryptocurrency that was proposed by Vitalik Buterin in late 2013 and development began in early 2014. It was designed as a versatile platform for creating decentralized applications (DApps) and smart contracts.

Risk Management

Risk management is a risk management model that involves controlling potential losses while maximizing profits. The main risk management tools are stop loss, take profit, calculation of position volume taking into account leverage and pip value.

Index

Index in trading is the measure of the performance of a group of stocks, which can include the assets and securities in it.

Supertrend indicator

Supertrend Indicator is a trend-following indicator that helps traders identify potential entry and exit points in the market. It combines price and volatility data to plot a trend-following line that can be used to guide trading decisions. When the price is above the Supertrend line, it suggests a bullish trend, and when below, a bearish trend.

Table of Contents
Table of Contents
Who We Are
Business Solutions
For Users
TU News
Popular Sections
Disclosures
CONTACT US
Legal
We are in Social Media
© IAFT Ltd., 2010-2026 All rights to the website are owned by IAFT Ltd.,
Registration number - HE 336186
  • Risk disclosure:

    Information on the TradersUnion.com website is for informational purposes only and does not constitute any motive or suggestion to visitors to invest money. Moreover, we hereby warn you that trading on the Forex and CFD markets is always a high risk. According to the statistics, 75-89% of customers lose the funds invested and only 11-25% of traders earn a profit. Trading in futures and options carries substantial risk of loss and is not suitable for every investor.

    That is why you should only invest money that you are prepared — or can afford — to lose at such high risks. Tradersunion.com does not provide any financial services, including investment or financial advisory services. Also, the Traders Union is not a broker and does not get money for trading in the Forex or CFD markets. Our website only provides information on brokers and the markets and helps its users to select the best brokerage company based on detailed information and objective analysis of brokers.

  • Disclaimer:

    Traders Union (TradersUnion.com) shall not be liable for the consequences of trading decisions made by the Client and for the possible loss of his capital resulting from the use of this website and information published on it.

    Forex market, CFD and cryptocurrency trading involves high risks and is not suitable for everyone. Before investing money, you need to adequately assess the level of your expertise and be aware of the risks, particularly in the context of trading with leverage. The information on this website is not intended for distribution or use by any person in any country or jurisdiction, where such distribution or use would be in violation of the local law or regulation. Any payments by Traders Union (TradersUnion.com) to the users of our website shall be legally interpreted solely as an incentive on our part for the activity on the website in the form of a deduction of a part of the advertising income; they shall not be a subject of any claims of our users or our obligations, a subject of disputes, as well as cannot be considered in relation to the services provided to users by brokers, both in fact and in their completeness and volume. The administration of the website shall not be liable for the content of user comments and reviews about the companies and shall not verify whether the authors of the reviews are indeed real clients of a specific company. All reviews, both negative and positive are published on the website without verification of their reliability; only offensive reviews that call for violence or any kind of discrimination and also reviews published from one group of IP addresses are moderated and removed. The authors of the materials shall be fully liable for the accuracy, completeness and impartiality of any information in the articles and reviews, including in the context of their use or mention of any brand names or trademarks. All mentions of the names of companies and their brands in any materials on the website shall be made in the context of communication of socially important information to the people about their activities by independent journalists, who are the authors. All evaluations and indicators on the website express the subjective opinion of the authors of the reviews (articles) and shall not be viewed as accurate statements and be a subject of disputes and claims against Traders Union.

  • Disclosure of advertisers and revenues:

    All the services on the Tradersunion.com website are free for you to use. Our team spends thousands of hours per annum researching brokers and gathering information about them to help investors all over the world to choose reliable companies and to avoid fraudsters.

    Indeed, the curating, sourcing, and organization of this process requires substantial financial investment by Tradersunion.com, which the website earns in the form of advertising payments. There are two types of advertising services on the website — direct advertising or partner (broker) participation programs. However, no services purchased by our partners shall affect the recommendations on our website, or our opinions, or ratings. Our ratings are based on our objective rating criteria and methodology; and the results are always equally and fairly applied to each broker. The work of our content authors and research groups does not involve any interaction with our advertisers and they do not have access to data concerning the amount of advertising purchased. For over 10 years we consider our independence, absolute openness, and objectivity as our main priority. Please follow the links to each of our affiliated broker’s websites. This will help Tradersunion.com to continue to provide our services to you for free.

onepercentfortheplanet.org World Association of News Publishers https://gdpr.eu/ GDPR