Building a SuperTrend Indicator with ATR-Based Trailing Bands

Summary

The document presents a ProBuilder implementation of the SuperTrend indicator. It builds upper and lower bands around median price using average true range over a configurable period and a multiplier. The trend state changes when closing price crosses the prior band; the active band is then adjusted to trail price, and the output switches between the upper and lower bands according to trend direction. The newer version also colors the plotted indicator according to its movement, while a legacy version supports older platform releases.

The example uses a multiplier of 3 and an ATR period of 10, but the document does not provide tests, market comparisons, or evidence that these settings are suitable across assets or time frames. It describes indicator construction and platform compatibility rather than a complete entry, exit, or position-sizing strategy. Traders would need to evaluate parameter sensitivity, whipsaws, and execution assumptions before using it in a system.

Key ideas

• SuperTrend bands are formed by adding and subtracting a multiple of average true range from median price.
• The trend state flips when the close crosses the previous upper or lower band.
• The active band is adjusted to trail price as the trend continues.
• The document gives separate ProBuilder versions for newer and older platform releases.
• It supplies no evidence that the example settings produce profitable signals.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.