// 01 What is the Supertrend Indicator?
Supertrend is an ATR (Average True Range) based indicator that dynamically adjusts to market volatility. It plots a line either above or below the price candles — green below price means bullish trend, red above price means bearish trend.
When price crosses above the Supertrend line, it signals the start of an uptrend — a buy signal. When price crosses below it, the trend has flipped — a sell/exit signal. The ATR calculation means the indicator automatically widens during volatile periods and tightens during calm periods, making it adaptive to NSE's varied market conditions.
// 02 Best Supertrend Settings for NSE
The two parameters are ATR Period (how many bars to calculate ATR) and Multiplier (how far the line sits from price):
- Period 10, Multiplier 3.0 — The classic default. Good starting point for most NSE stocks on 5-minute charts.
- Period 7, Multiplier 2.5 — More sensitive, more signals. Use on highly liquid stocks (RELIANCE, NIFTY futures).
- Period 14, Multiplier 3.5 — Fewer signals, less noise. Better for 15-minute charts or volatile stocks.
// 03 Supertrend Entry and Exit Rules
Entry (BUY): Supertrend direction changes from -1 (bearish) to +1 (bullish) — i.e. price closes above the Supertrend line after being below it.
Exit: Supertrend direction changes from +1 (bullish) to -1 (bearish) — i.e. price closes below the Supertrend line.
Stop Loss: The Supertrend line itself acts as a trailing stop. You can also add a fixed rupee stop as a safety net.
Target: Let the trade run until the Supertrend signals an exit, or use a fixed 2:1 risk-reward target.
// 04 Best NSE Stocks for Supertrend Strategy
Supertrend works best on stocks with strong directional moves and decent liquidity. Good candidates include:
- ADANIPORTS — strong trends, high volume
- TATAMOTORS — volatile, directional moves
- RELIANCE — liquid, trends well on 5-minute charts
- HCLTECH — smoother trends, fewer gaps
- BANKNIFTY futures — strong intraday directional moves
Avoid sideways stocks or low-volume small caps where Supertrend generates constant whipsaws.
// 05 Backtesting Supertrend on MyAlgoKart
MyAlgoKart includes a dedicated Supertrend strategy. Select Supertrend from the strategy grid, set your ATR period and multiplier, pick a symbol, timeframe and date range, and run the backtest. The trade log shows every direction flip and the resulting P&L.
Combine it with EMA crossover or VWAP filter using AND logic for higher quality signals — only enter the Supertrend buy if price is also above VWAP.