Supertrend Reversal Entries with Percentage Stops and Targets
Summary
This long-only strategy uses a Supertrend direction change to identify a potential entry: it buys when the indicator switches from bearish to bullish. It closes the position when Supertrend reverses bearish, and also submits a stop-loss and profit-target exit based on percentages of the average entry price. The ATR period, Supertrend factor, stop percentage, and target percentage are configurable. The script plots the indicator and marks entry and reversal signals; it also includes alert calls associated with entry and open-position logic.
The description frames the method as an educational trend-following example for NIFTY and other liquid markets, with possible intraday or short-term use. It does not include backtest statistics, market-by-market evidence, or details validating the alert behavior and execution assumptions. Supertrend reversals can lag price changes, while percentage exits and outcomes depend on instrument characteristics and settings. The material advises independent analysis and risk management, so the rules should be treated as a basic template rather than an established performance claim.
Key ideas
- A long entry occurs when Supertrend changes from bearish to bullish.
- A bearish Supertrend reversal closes an open long position.
- Percentage-based stop and target levels are calculated from average entry price.
- ATR length and Supertrend factor are configurable inputs.
- The document provides no performance evidence or validation across markets.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.