Supertrend is a trend-following indicator plotted as a line that sits below price in an uptrend and above price in a downtrend. It flips sides when the trend changes, giving a clear, rule-based read on direction and a built-in trailing stop.
How Supertrend is built
It uses the Average True Range (ATR) to set a band around price. A common setting is a 10-period ATR with a multiplier of 3. When price closes beyond the band, Supertrend flips and the line jumps to the other side of price.
How to trade it
Go long when Supertrend flips green (line below price), go short when it flips red (line above price), and trail your stop along the Supertrend line. It works best in trending conditions and whipsaws in tight ranges, so many traders pair it with a momentum filter like RSI.
How NSEStocksChart uses it
A Supertrend-flip-plus-RSI strategy is one of our tracked option setups, shown with its recorded accuracy and average peak move on the Option Radar pages.
Not SEBI-registered. Educational only — nothing here is investment advice.