# SuperTrend

> The Supertrend indicator is a technical analysis tool that combines ATR and CCI to determine trend direction, entry and exit points, and risk management.

**Supertrend** is a trend indicator developed by Olivier Seban that helps determine trend direction and entry/exit points based on closing prices and volatility. It is equally suitable for all timeframes and instruments.

## How Supertrend Works

The indicator uses a combination of two tools:

1. [CCI](https://help.veles.finance/en/filters/cci/) — measures the deviation of the current price from its average price over a period, indicating the strength and direction of the trend.
2. [ATR](https://help.veles.finance/en/filters/atr/) — shows the volatility of the instrument, assessing price fluctuations.

Supertrend combines trend strength (CCI) and volatility (ATR), allowing you to quickly detect changes in direction and find optimal entry/exit points.

On the chart, Supertrend is displayed as a line whose color and position depend on the trend direction and volatility.

## Supertrend Signals

1. **Price and Line Crossing**
- Price crosses the line from below upward → possible upward reversal, signal to open a Long deal.
- Price crosses the line from above downward → possible downward reversal, signal to open a Short deal.
2. **Line Color**
- Green line → uptrend.
- Red line → downtrend.
3. **Line Slope**
- Upward slope → uptrend.
- Downward slope → downtrend.
4. **Line Direction Change**
- Upward to downward slope → downtrend signal.
- Downward to upward slope → uptrend signal.

## Trading Applications

Supertrend is suitable for:
- Trend detection.
- Filtering false signals.
- Setting Stop Losses in the direction of the line.
- Combining with other indicators ([RSI](https://help.veles.finance/en/filters/rsi/), [MACD](https://help.veles.finance/en/filters/macd/)) to confirm signals.

Flexible adjustments to the ATR period and multiplier allow the indicator to be adapted to any strategy.

## Using in Veles Bots

Two signal options are available:

1. **Supertrend Trend Change** — open a deal when the line changes direction (changes color) on the selected timeframe.
2. **Supertrend Trend** — the signal is active as long as the current trend persists (the line color does not change).

## Using in Veles Bots (Flexible Indicator)

Available settings:

- Period - the ATR period used to measure volatility. Range: 3–100, default 10.
- K - the ATR multiplier that determines the channel width. Range: 1.0–6.0, default 3.
- Interval - the candle timeframe.
- Method - the calculation type. By bar close (only on the selected interval) or by minute (once per minute for any interval).
- Shift - shifts the requested indicator value back by the specified number of candles.

## Limitations

- Supertrend performs poorly in flat or sideways markets, generating frequent false signals.
- Aggressive ATR multiplier settings can delay signals; conservative settings may cause premature exits.
- Like most trend indicators, signals appear after a move has begun — not at the exact reversal point.

## Summary

Supertrend is a clean and effective trend-following indicator that combines ATR volatility with CCI trend strength. Its two signal modes in Veles (Trend and Trend Change) make it adaptable to both signal-based and condition-based strategies. It is most reliable on higher timeframes and when paired with RSI or volume filters to confirm signal quality.