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Short side scan · tested as a short trade

Supertrend Sell Signal Screener

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

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 sell

  1. Close crossed below Supertrend(10)

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

Formula view
# tested as a short trade (profit when price falls)
crosses_below(close, supertrend(10, 3))
Example chart: Supertrend sell 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

When the price closes below the Supertrend line, the indicator switches to a downtrend and the line moves above the price. Holders often use this as an exit signal; short sellers use it as an entry.

Chalni tests this scan as a short trade. Many traders only take Supertrend sell signals when the bigger trend is down too, such as a price below the 200-day average.

How traders use it

  • Use it as an exit rule for stocks you own.
  • For short trades, the Supertrend line becomes the trailing stop.
  • Add a 200-day average filter to trade with the main trend.

Watch out for

  • False flips are common in sideways markets.
  • Short squeezes can push the price back above the line quickly.

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 does a Supertrend sell signal mean?

The close fell below the Supertrend line, so the indicator has flipped to a downtrend.

Can Supertrend be used for exits?

Yes. Many traders hold while the price stays above the line and exit when it closes below.

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