How to use the Supertrend indicator on crypto charts
Published · by Hunt4Coin
Supertrend is a trend-following indicator that draws one line below price in an uptrend and above price in a downtrend, placed a multiple of the Average True Range (ATR) away from the candle's midpoint, and it "flips" to the other side when a candle closes through it.
How the line is built
| Part | Default on Hunt4Coin | What it does |
|---|---|---|
| ATR length | 10 | How many candles are used to measure the average range (volatility) |
| Factor (multiplier) | 3 | How many ATRs away from the candle's midpoint the line sits |
| Direction | up (line below price) or down (line above price) | Changes only when a candle closes on the other side of the line |
In an uptrend the line can only move up or stay flat; it never moves down until the trend flips. That ratchet is why many traders use it as a trailing stop. Because the distance is measured in ATR, the line sits further from price in volatile markets and closer in quiet ones.
Step 1: read the direction
The simplest read: line below price and green means the indicator's trend is up; line above price and red means it is down. Supertrend says nothing about how strong the trend is or how far it will go; it only says which side of a volatility band price closed on.
Step 2: treat a flip as an event, not an order
A flip happens when a candle closes through the line. On Hunt4Coin the screener counts the bars since the last flip, so you can see whether a trend change is fresh (1–3 candles ago) or old. A flip on the daily chart carries more weight than one on the 5-minute chart, which can flip several times a day.
Step 3: check the higher timeframe
Flips that agree with the bigger picture tend to be cleaner. A common filter: only consider up-flips on the 1h chart while price is above the EMA 200 on the 4h or daily chart. The ready-made Strong uptrend scan in the screener combines exactly this kind of check: price above the 200 EMA, Supertrend up and ADX above 25.
Step 4: use the line as a trailing stop
If you are already in a position, the Supertrend line gives a stop that follows the trend and steps up as price rises. Wider settings (factor 4 or 5) keep you in longer but give back more when the trend ends; tighter settings (factor 2) exit sooner but get shaken out more often.
Step 5: avoid ranges
Supertrend works best when price trends. In a sideways market it flips back and forth, and each flip after a small move costs fees. ADX above about 20–25 is a common way to check that a trend exists before acting on a flip; a flat EMA 200 or tight Bollinger Bands suggest a range.
Common mistakes
- Acting on the live candle. The line can be crossed during a candle and the candle can still close back on the original side. Closed candles are what count.
- Using Supertrend in choppy ranges, where repeated flips each cost a round-trip fee.
- Tuning the settings to one coin's past chart and expecting the same results on another coin or period.
- Ignoring the timeframe. A 15-minute flip and a daily flip are very different signals.
- Using it alone. Pair it with a trend filter (EMA 200), a strength check (ADX) and momentum (RSI or MACD).
- Forgetting fees and gaps. A stop at the Supertrend line can fill worse than the line after a sudden gap.
Try it free
- On any Hunt4Coin candle chart, open Indicators and add Supertrend (ATR length 10 and factor 3 by default; you can change both). Indicator list.
- In the crypto screener, filter the top 100 coins on 15m, 1h, 4h or 1d by Supertrend: up trend, down trend, or turned up / turned down in the last 3 candles, or start from the ready-made Strong uptrend scan. Scanner docs.
- Set an alert on Supertrend (for example, "price crosses above Supertrend line (10, 3)" on the 4h chart), checked on closed candles and sent to Telegram, Discord, email or the browser. Alerts docs.
- Test a rule such as "enter when Supertrend direction crosses above 0 while price is above the EMA 200; exit when it crosses below 0" in the backtester with fees, compare factor 2, 3 and 4, and look at how many trades the fees cost. Then practise it with pretend money in paper trading.
More guides: Bollinger Bands, how to read RSI and MACD, RSI divergences, how to use a crypto screener and how to backtest with fees.
Information only, not financial advice. Supertrend describes past price and volatility; it doesn't predict where price will go.