A modified Supertrend indicator that adjusts ATR calculations based on candle colors to provide more precise stop loss and trend tracking in volatile markets.
Explore complementary indicator rolesHow it works
This advanced Supertrend variant calculates Average True Range (ATR) differently by segregating ATR calculations based on red and green candles. For long trades, it uses ATR derived only from red candles to determine stop loss, while for short trades, it uses ATR from green candles.
The indicator dynamically adjusts trailing stops by considering only decreasing volatility measurements, preventing excessive stop loss widening during market fluctuations
Why it may be useful
Traditional Supertrend indicators often create wide or lagging stop losses due to comprehensive ATR calculations. This modified version provides more precise trend tracking by isolating volatility measurements specific to negative price movements.
By intelligently managing stop loss distances and reducing the impact of high volatility, traders can potentially minimize drawdowns and maintain more accurate trade management strategies
When to explore it
This indicator performs best in strongly trending markets with significant price volatility. It is particularly effective for traders seeking more refined trend-following strategies that adapt to changing market conditions.
Ideal for instruments experiencing substantial price movements and requiring dynamic risk management. Works exceptionally well in markets with clear directional trends and where traditional stop loss methods might prove too rigid or imprecise
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
