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Trend scan

Supertrend Buy Signal Screener

This scan finds stocks whose closing price crossed above the Supertrend line (ATR 10, multiplier 3) on the latest day. On a chart, this is where Supertrend flips from red to green.

Run this scan in the live demoFree, no sign-up. The demo uses made-up sample data.

The exact rule

Type this in Chalni: supertrend buy

  1. Close crossed above Supertrend(10)

Find US stocks where the closing price crossed above the Supertrend line (10, 3) today.

Formula view
crosses_above(close, supertrend(10, 3))
Example chart: Supertrend buy signalDaily candles of a made-up sample stock with Supertrend (10, 3): green below price, red above. The shaded day is the day the scan fired.
  • Supertrend (10, 3): green below price, red above
  • Shaded day: the scan fired
Example from Chalni's made-up sample market, not a real stock. It shows the most recent time this scan fired in the sample US market, picked whether or not the trade worked.

What it means

Supertrend is a trailing line built from the average true range (ATR). It sits below the price in an uptrend and above the price in a downtrend. When price closes through the line, the indicator flips and the trend is said to have changed.

The settings 10 and 3 mean: use a 10-day ATR, and keep the line 3 ATRs away from the middle of the day's range. A bigger multiplier gives fewer, later signals; a smaller one gives more, earlier ones.

How traders use it

  • Swing traders use the flip as an entry and the line itself as a trailing stop.
  • A filter such as "close above 200 day sma" keeps you trading with the bigger trend.
  • Supertrend is popular for intraday trading too. Chalni starts with daily data at launch.

Watch out for

  • In sideways markets Supertrend flips often, giving a string of small losses.
  • Right after a big move the line is far from the price, so the first stop can be wide.

Test it before you trust it

Every scan in Chalni sits an exam. First it runs on older data, the practice: each time it picks a stock, the stock is held for 10 trading days and 0.2% is paid in costs. Then it runs on newer data it has never seen, the exam. A scan that only works in practice has just memorised the past.

See the practice and exam results for this scan in the demo (on sample data; real data comes at launch).

Questions

What are the best Supertrend settings?

10 and 3 are the most common defaults. Traders who want fewer signals raise the multiplier; day traders often use shorter settings. Test any change before you trust it.

Is Supertrend a good indicator?

It is simple and clear in trending markets, but weak in sideways ones, like most trend-following tools.

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