— HOW IT WORKS
What Supertrend does, and when it works.
Supertrend takes an ATR reading, multiplies it by a factor (default 3.0), and offsets it from the median price. When close crosses the band, the line flips sides — that flip is the signal. The result is a single plot that behaves more like a stop-and-reverse than a band system.
In crypto the magic is the ATR step: high-volatility ranges automatically widen the band, which kills most of the EMA whip you see on alts. Park your stop on the line and move it only on closes, not wicks.
It still whips in pure ranges and arrives late at regime changes — pair it with VWAP or a higher-timeframe bias to cut countertrend signals.
— BEST FOR
Where it earns its slot.
cryptotrendday-tradingswing-trading