Trends/Volatility and bands

SuperTrend

A line that switches between sitting under price and sitting over price, based on average true range.

Volatility and bandsBest on 3M, 6M, 1YAlso called ATR trailing band

Illustration of the SuperTrend shape. It is a sketch, not real price data.

What it shows

SuperTrend draws one line. When price is above it, the line sits below price and rises. When price closes below the line, the line flips above price and falls. The distance is set by the average true range.

The line is always on one side of price. When it flips, a new color shows.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Compute the 10-bar ATR and the midpoint (high + low) ÷ 2 of each bar.
Upper band = midpoint + 3 × ATR, lower band = midpoint − 3 × ATR.
Lower band only rises while price stays above it. Upper band only falls while price stays below it.
When the close crosses the active band, switch sides.

Starting values: ATR 10; Multiplier 3. These are proposed and will be tuned on real price data before launch.

How to read it

Teal line below price: the line is acting as a floor.
Red line above price: the line is acting as a ceiling.
The gold dot is the flip.

Status labels you may see

Label	What it means
Line below price	Close is above the SuperTrend line.
Line above price	Close is below the SuperTrend line.
Just flipped	The line switched sides in the last 3 bars.

What cancels it

A close across the line flips it.

What traders check next

How often the line flips.
The distance between price and the line.
Whether volatility changed.

Limits

Flips often in sideways markets.
It lags.
Settings change the result.

Try it in forecastviz

Open any ticker and choose Volatility and bands → SuperTrend in the left menu.
Switch between 3M, 6M, 1Y to see how the picture changes.
Compare with Chandelier exit and Parabolic SAR on the same chart.

Open on a ticker

Questions

Is it a signal?

It is a calculation of distance and side. We make no claim about what follows.

What do the colors mean?

Teal when price is above the line. Red when below.