Swing Trading Using Supertrend Indicator

Learn to use Heikin-Ashi + Supertrend (with example) →

Hey there 👋🏼

Today in less than 5 minutes:

1) Better alternative to candlestick charts
2) A profitable swing trading strategy using a 'super' indicator
3) 3 stocks for swing trading (based on the strategy)

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Heikin-Ashi Charts > Candlestick Charts

It’s impossible to get the market trend right 100% of the time by just looking at candlesticks.

The solution? Heikin-Ashi charts.

Easier to decipher, Heikin-Ashi charts are made up of a different kind of candlestick. This modified candlestick chart helps cut the noise and identify patterns and trends easily. By the way, you can learn a profitable Heikin-Ashi trade setup from a derivatives trader with 15+ years of experience here.

One can clearly notice the difference:

Candlestick chart

Heikin-Ashi chart

Heikin-Ashi charts can be combined with a ‘super’ indicator for an excellent swing trading strategy. Let’s learn how!

Swing Trading with Supertrend Indicator

What if we told you that there is an indicator that will help you in identifying market trends by plotting a line on the chart that acts as a dynamic support and resistance for the stock’s price?

We are talking about the Supertrend indicator!

This indicator combines the average true range (a measure of market volatility) with a multiplier to calculate its value. This value is then added to or subtracted from the asset’s closing price to plot the Supertrend line.

The Supertrend is a lagging indicator, and most helpful when prices are going in a clear direction.

Here’s a swing trading strategy using the Supertrend indicator on Heikin-Ashi charts:

Note that we will use an ATR length of 10 periods and a factor of 2 for this strategy, and look at charts in the daily or weekly timeframe.


> A previous downtrend should be in place, indicated by a red Supertrend line.
> The Supertrend indicator should turn green, signaling an uptrend.
> 1-3 bullish candles should be formed above the Supertrend line, confirming the trend reversal. Entry can be taken on the second or third candle.

Note that when the Supertrend line turns positive, the angle should be steep. The steeper the line, the greater the momentum.


> A previous uptrend should be in place, indicated by a green Supertrend line.
> The Supertrend indicator should turn red, signaling a downtrend.
> 1-3 bearish candles should be formed below the Supertrend line, confirming the trend reversal. Entry can be taken on the second or third candle.

Note that when the Supertrend line turns negative, the angle should be steep. A steeper angle is better confirmation.

We actually did the work and scanned through the NIFTY50 stocks looking for the above criteria.

Did we find any suitable stocks? Read on to find out!

Learn to use the Supertrend indicator & Heikin-Ashi charts for a profitable swing trading strategy in Mr. Harneet Singh Kharbanda’s Swing Trading Course. It’s available at a 50% discount for a limited time, so HURRY UP!

We found 3 stocks suitable for swing trading!

We scanned through the NIFTY50 stocks looking for the criteria defined in the above strategy.

And found 3 stocks (as of 17th January 2024) that fit the bill!

1) LTIM (Daily Timeframe)

Trend reversal with good volumes spotted. However, the Supertrend line is still flat.

2) TECHM (Weekly Timeframe)

Continuation of an uptrend after a brief downtrend can be spotted, with good momentum as indicated by the steepening Supertrend line.

3) ITC (Weekly Timeframe)

Here too, an uptrend seems to have returned after a brief downtrend, and steepness in the Supertrend line suggests good momentum.

Note that none of the above stocks are intended as recommendations. Do your own research before trading/investing.

Learn to use Heikin-Ashi charts & the Supertrend indicator to identify stocks for swing trading yourself in Mr. Harneet Singh Kharabanda’s Swing Trading Course.

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