Understanding Supertrend (95, 5) and Multi-Indicator Setups
The Supertrend indicator flips below price in an uptrend and above it in a downtrend, using ATR (volatility) to set the band distance.
The (95, 5) style setup used on HYPE-USD here: a long lookback window (95) smooths the trend so you only flip on structural changes, while the multiplier (5) is relatively tight, so stops trail close. Result: fewer, later signals — better for trend-following, worse for chop.
- *Why combine indicators:**
- Supertrend gives direction (BULL/BEAR)
- RSI (14) filters exhaustion — at 62 the market is neutral, so longs have room but it's late-cycle
- Bollinger squeeze warns that a volatility expansion is coming; a Supertrend flip during a squeeze is the strongest signal in this stack
Honest limits: any indicator reads history, not the future. Backtest on out-of-sample data, expect whipsaws in ranging markets, and size positions so a losing streak doesn't end the account. An indicator is a filter, not an oracle.