SuperTrend Bands Using ATR, Standard Deviation, or Standard Error

Summary

This indicator extends the classic SuperTrend by centering its bands on the midpoint of the recent high-low range, rather than the closing price. It offers three ways to measure the band width: Average True Range, standard deviation, or standard error. A shared period controls the selected measure, while a multiplier widens or narrows the bands and a separate midpoint period sets the range used for the center.

Trend direction changes when the close crosses the prior band. In an established trend, the relevant band is constrained so it does not move back against the trend; a reversal resets the opposite band. The indicator plots the active trend line, an additional line offset by the selected volatility measure, and directional markers when trend changes. The document provides implementation logic but no backtest, performance evidence, or guidance on markets and timeframes. As a lagging, price-derived indicator, its signals may be unreliable in sideways conditions and should be evaluated with market-specific testing.

Key ideas

• The band center is the midpoint between the recent high and low extremes.
• Band width can be based on ATR, standard deviation, or standard error.
• A multiplier adjusts band width, and a separate period controls the center calculation.
• Trend direction flips when price crosses the previous band, with band behavior constrained during trends.
• The document describes indicator mechanics but provides no empirical performance evidence.

Tags

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