What is the SuperTrend indicator and how is it used?

SuperTrend is a trend-following stop-and-reverse line built from ATR (average true range): it sits a volatility-scaled distance below price in uptrends and above price in downtrends, flipping sides when price crosses it. Its two parameters are the ATR period (commonly 10) and the multiplier (commonly 3).

It is used as both signal and trailing stop: long while price is above the line, exit or reverse when it flips. Because the offset scales with volatility, it adapts to quiet and wild markets better than fixed-percent trails. In our monthly 50-coin re-tests SuperTrend has been among the more robust default-parameter families — verifiable on the live results pages rather than taken on faith.