Multi-Step FlexiSuperTrend - Indicator [presentTrading]

Sep 22

This version of the indicator is built upon the foundation of a strategy version published earlier. However, this indicator version focuses on providing visual insights and alerts for traders, rather than executing trades. This one is mostly for @thorcmt.

█ Introduction and How it is Different

The **Multi-Step FlexiSuperTrend Indicator** is a versatile tool designed to provide traders with a highly customizable and flexible approach to trend analysis. Unlike traditional supertrend indicators, which focus on a single factor or threshold, the **FlexiSuperTrend** allows users to define multiple levels of take-profit targets and incorporate different trend normalization methods.

It comes with several advanced customization features, including multi-step take profits, deviation plotting, and trend normalization, making it suitable for both novice and expert traders.

BTCUSD 6hr Performance


█ Strategy, How It Works: Detailed Explanation

The **Multi-Step FlexiSuperTrend** works by calculating a supertrend based on multiple factors and incorporating oscillations from trend deviations. Here’s a breakdown of how it functions:

🔶 SuperTrend Calculation
At the heart of the indicator is the SuperTrend formula, which dynamically adjusts based on price movements.

🔶 Normalization of Deviations
To enhance accuracy, the **FlexiSuperTrend** calculates multiple deviations from the trend and normalizes them.

🔶 Multi-Step Take Profit Levels
The indicator allows setting up to three take profit levels, which are displayed via price level alerts. lows traders to exit part of their position at various profit intervals.

For more detail, please check the strategy version - Multi-Step-FlexiSuperTrend-Strategy:

and 'FlexiSuperTrend-Strategy'

█ Trade Direction

The **Multi-Step FlexiSuperTrend Indicator** supports both long and short trade directions.
This flexibility allows traders to adapt to trending, volatile, or sideways markets.

█ Usage

To use the **FlexiSuperTrend Indicator**, traders can set up their preferences for the following key features:

- **Trading Direction**: Choose whether to focus on long, short, or both signals.
- **Indicator Source**: The price source to calculate the trend (e.g., close, hl2).
- **Indicator Length**: The number of periods to calculate the ATR and trend (the larger the value, the smoother the trend).
- **Starting and Increment Factor**: These adjust how reactive the trend is to price movements. The starting factor dictates how far the initial trend band is from the price, and the increment factor adjusts subsequent trend deviations.

The indicator then displays buy and sell signals on the chart, along with alerts for each take-profit level.

Local picture


█ Default Settings

The default settings of the **Multi-Step FlexiSuperTrend** are carefully designed to provide an optimal balance between sensitivity and accuracy. Let’s examine these default parameters and their effect on performance:

🔶 Indicator Length (Default: 10)

The **Indicator Length** determines the lookback period for the ATR calculation. A smaller value makes the indicator more reactive to price changes, but may generate more false signals. A longer length smooths the trend and reduces noise but may delay signals.

Effect on performance: Shorter lengths perform better in volatile markets, while longer lengths excel in trending markets.

🔶 Starting Factor (Default: 0.618)

This factor adjusts the starting distance of the SuperTrend from the current price. The smaller the starting factor, the closer the trend is to the price, making it more sensitive. Conversely, a larger factor allows more distance, reducing sensitivity but filtering out false signals.

Effect on performance: A smaller factor provides quicker signals but can lead to frequent false positives. A larger factor generates fewer but more reliable signals.

🔶 Increment Factor (Default: 0.382)

The **Increment Factor** controls how the trend bands adjust as the price moves. It increases the distance of the bands from the price with each iteration.

Effect on performance: A higher increment factor can result in wider stop-loss or trend reversal bands, allowing for longer trends to develop without frequent exits. A lower factor keeps the bands closer to the price and is more suited for shorter-term trades.

🔶 Take Profit Levels (Default: 2%, 8%, 18%)

The default take-profit levels are set at 2%, 8%, and 18%. These values represent the thresholds at which the trader can partially exit their positions. These multi-step levels are highly customizable depending on the trader’s risk tolerance and strategy.

Effect on performance: Lower take-profit levels (e.g., 2%) capture small, quick profits in volatile markets, while higher levels (8%-18%) allow for a more gradual exit in strong trends.

🔶 Normalization Method (Default: None)

The default normalization method is **None**, meaning the deviations are not normalized. However, enabling normalization (e.g., **Max-Min**) can improve the clarity of the indicator’s signals in volatile or choppy markets by smoothing out the noise.

Effect on performance: Using a normalization method can reduce the effect of extreme deviations, making signals more stable and less prone to false positives.

Sep 22

Release Notes

add the Introduction back