BITCOIN SUPERTREND

What is Bitcoin Supertrend?

Bitcoin Supertrend compares price with a trailing reference built from the midpoint of each candle and its recent average range. It maintains an upper and a lower candidate band, but displays one active line at a time. A completed close crossing the active band can switch which line is shown.The default uses a 10-period Average True Range and a multiplier of 3. Average True Range, or ATR, smooths the size of candle movements while allowing for the previous close. This gives the reference an adjustable distance that responds to how widely Bitcoin has been moving, rather than a fixed dollar or percentage distance.

Begin with the two basic bands

The candle midpoint is (high + low) ÷ 2. The basic upper band is midpoint + multiplier × ATR; the basic lower band is midpoint − multiplier × ATR. These are ingredients for the final trailing bands. They are not automatically the line displayed on the chart.

Account for the trailing memory

The final upper band keeps its prior value unless the new basic upper band is lower or the previous close exceeded the prior upper band. The final lower keeps its prior value unless the new basic lower is higher or the previous close fell below the prior lower. These rules let the band carry a reference forward rather than jump with every midpoint.

Read the active side

While the upper band is active, a close above it switches the displayed line to the lower band. While the lower is active, a close below it switches to the upper. Maketo describes price above the active line as Rising, below it as Falling, and equality as Mixed. The line is a calculated reference, not a guaranteed floor or ceiling.

How Supertrend is calculated

Start with (high + low) / 2 plus or minus 3 times the 10-period average true range, then carry forward the band according to the previous state. The page is published on Supertrend, multiplier 3, period 10. A period counts candles at the interval you choose, so the same setting covers a different stretch of time on a one-hour chart than on a daily one. How smoothing and missing candles are handled.

A calculation you can follow

These invented inputs show why the final bands can differ from the freshly calculated basic bands. Suppose a candle’s midpoint is $100,000 and its initialized 10-period ATR is $1,000. With multiplier 3, the basic bands are $103,000 and $97,000.Suppose the previous final upper and lower bands were $102,000 and $98,000, and the previous close was $100,000.The new basic upper is not lower than $102,000, and the previous close did not exceed $102,000, so the upper stays at $102,000. The lower likewise stays at $98,000 because neither condition for replacing it is met.If the upper band was active and the current close is $102,500, the rule switches the displayed reference to the $98,000 lower band. If the close is $101,000 instead, the upper remains active.Calculating midpoint plus or minus three times ATR is only the first step. The previous bands, previous close and active side are necessary to reproduce the chart.

ATR period 10

ATR begins with a simple average of true ranges, then uses Wilder’s update weight of one-tenth at the default. A shorter period reacts more quickly to changing range sizes. The current candle’s true range can affect the candidate distance before a final close settles the reading.

Multiplier 3

This scales the ATR distance. A larger multiplier places the basic bands further from the midpoint and generally makes side changes less frequent. It does not multiply the probability of a continued move or prescribe a fixed percentage distance.

Initialization and timeframes

Maketo starts with the upper band at the first complete ATR value, requiring 11 candles at the default because the first true range needs a previous close. This declared starting rule affects early output. Switching candle interval changes the ranges, smoothing and band history together.

A wider candle changes more than direction

A large range can increase ATR and move the basic bands further apart. The final active line may retain an older level under the trailing rules. A line that barely changes therefore does not prove the current candle was quiet.

Repeated crossings can occur in an alternating market

Back-and-forth closes can repeatedly cross the active reference. Shorter periods and smaller multipliers can make this more common. Count the actual distance moved and examine the sequence rather than interpreting every side change as a major new phase.

Implementation details matter

Changing ATR from Wilder smoothing to an exponential average, changing the initial side, or using high-low crossings instead of closes changes the output. Matching only the numbers 10 and 3 is not enough for an exact comparison.

Supertrend compared with Parabolic SAR

SAR advances toward a tracked extreme using an acceleration factor. Supertrend uses range-scaled bands and closing-price crossing rules. Comparing their line positions shows how those two forms of trailing memory respond differently to long wicks, changing candle sizes and persistent movement. Open Bitcoin Parabolic SAR.

Does touching the band change Supertrend’s side?

The side-change test uses a strict closing-price crossing. A close equal to the active band retains that side, although the page’s direct price-versus-line label is Mixed at equality.

Is multiplier 3 the same as a 3% band?

No. It means three times ATR. The corresponding percentage of Bitcoin’s price changes as the average range and price level change.