How-to Supertrend indicator

How to use Supertrend on Kite

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Supertrend is one of the most popular Indian retail indicators: an ATR-based trailing trend line. Simple, visual, and works well in trending markets.

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Market-risk disclaimer. Trading involves risk. Indicators are tools, not guarantees. Past performance doesn’t predict future. Use risk management.

Step-by-step procedure

See the procedure infobox above for the seven steps.

Supertrend formula

Supertrend uses Average True Range (ATR):

  • Basic Upper Band = (High + Low) / 2 + Multiplier x ATR.
  • Basic Lower Band = (High + Low) / 2 - Multiplier x ATR.
  • Supertrend = Lower Band (uptrend) or Upper Band (downtrend) based on price action.

When price crosses above Upper Band: Supertrend flips to Lower Band (uptrend). When price crosses below Lower Band: Supertrend flips to Upper Band (downtrend).

Parameter sensitivity

  • Period (ATR length): higher = smoother, fewer signals; lower = more responsive, more signals.
  • Multiplier: higher = wider trailing stop, fewer whipsaws; lower = tighter, more whipsaws.

See also

External references

References

  1. Zerodha support documentation on Kite indicators.
  2. Varsity technical analysis module on Supertrend.
  3. Olivier Seban’s Supertrend original publication.

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