Supertrend Confirmation Stack

Let Supertrend define swing bias while a responsive Hull or Jurik MA times precise entries on higher-timeframe setups.

Trend confirmation Swing trading 4h · 1d

Execution snapshot

Market regime
Clear swing structure with well-spaced highs/lows.

Primary pairs
BTC/ETH higher timeframes, majors with derivatives support.

Typical bands
first_band hma/jma length 21 vs second_band supertrend length 10, multiplier 3.

Signal rule
Only trade in the direction of Supertrend’s color; entries trigger when MA crosses in alignment.

Why this works

Supertrend uses ATR to track trailing stops around price, flipping when volatility overpowers the prior move. By using it as a bias filter, you avoid counter-trend trades during consolidations. Hull and Jurik MAs provide smooth yet responsive timing, offering early clues before Supertrend flips while respecting its directional bias.

Configuring in QuantRelay

first_band: hma or jma with length=21. Jurik offers smoother transitions at the cost of computation; Hull is faster.
second_band: supertrend with length=10 and multiplier=3. Increase multiplier (3.5–4.0) on noisy pairs.
Set offset=0. Adjust length to 14–21 for swing or position trades.
In the index, combine with filters such as interval=4h/1d and profitability ≥ 55 to surface swing-quality candidates.

Playbook

Entry

Wait for Supertrend to flip bullish; then monitor the HMA/JMA for a cross above its recent swing high.
Use structure confirmation — higher low on price or break of prior swing high.
For shorts, invert the logic: Supertrend flips bearish, MA rolls under swing support.

Exit

Trail stops using Supertrend bands or 2× ATR below swing lows to mirror its trailing logic.
Scale partial size when price hits key higher-timeframe levels (weekly open/close, prior daily highs).
Exit fully when Supertrend flips or when MA diverges from price (flattening slope).

Risk controls

Supertrend can lag near inflection points; predefine a smaller starter size until the new bias proves itself.
Monitor funding and open interest — extreme positioning increases false flips.
Review Supertrend settings quarterly to account for volatility regime shifts.

Going further

Pair with RSI trendlines to catch divergence before Supertrend flips.
Clone strategies into a watchlist DB table and script alerts when Supertrend changes color.
For discretionary confirmation, overlay market structure (market profile, anchored VWAP) to validate bias.