Supertrend Optimization: Verify Direction Before Ranking Results

Supertrend uses ATR-based bands and a persistent direction state. In the conventional display, the bullish line is below price and the bearish line is above price. A strategy can enter long when the line changes from above to below and reverse or exit when the opposite change occurs. Colors are configurable, so verify the direction logic rather than relying on a green or red label.

The basic bands are the high–low midpoint plus or minus a multiple of ATR. The final bands also depend on previous band values and closes; Supertrend is not just a fresh symmetric envelope around each bar. Changing the multiplier changes the basic distance, while the state and price path determine subsequent flips. Do not infer a guaranteed signal count or better trend capture from the multiplier alone.

Specify whether a confirmed flip creates a market order, whether the line is used as a stop, and what an opposite signal does to an open position. A line recalculated at the bar close cannot retroactively serve as a resting stop earlier in that bar. Keep this order model, sizing and costs fixed before comparing parameter results.