Supertrend Fakeout

Supertrend Fakeout is a SuperTrend on MT4 and MT5 that treats a break of its own line as a question rather than an answer.

An ordinary SuperTrend flips the moment price closes on the wrong side. This one starts counting instead, and most of the time it never flips at all.

What happens when price crosses the line

The line is built the usual way: a trailing band at ATR times a multiplier, ratcheting one direction while the trend holds. Nothing unusual there.

The difference is in what a breach does. When price goes through the line, the tool records the bar it happened on and the value the opposite band held at that instant. Then it waits, and it flips the trend only if one of two things becomes true:

• The breach lasts. More than Fakeout Limit bars have passed since it started, five by default.
• The breach is deep. Price has gone past the line by more than Fakout ATR Mult times ATR, 1.5 by default.

If price comes back to the correct side of the line before either fires, the whole thing is cancelled. The counter resets, the trend never changed, and the line carries on as if nothing happened.

That's it. Two conditions, and between them they turn "price touched the line" into "price meant it".

The flip is anchored backwards

When a flip does happen, the new line isn't set from the current bar. It's set to the value the opposite band held on the bar the breach began.

That matters more than it sounds. On a fast move, a band computed from the bar that finally confirmed the flip is already a long way from where the move started, and the new trailing stop lands too far away to be useful. Anchoring it to the start of the breach puts the line where the market actually turned.

The arrows are the trade

While a breach is in progress and the trend has not flipped, the tool draws an arrow on the bar. Blue below the candle in an uptrend, red above it in a downtrend.

Read that carefully, because the direction is the opposite of what most people expect. An arrow below the bar in an uptrend means price has dipped under the trend line and the tool has not accepted it. It's marking the fakeout, and the fakeout points back into the trend.

There's a guard on it: Signal Smooth, five bars, requires the trend to have been in place for at least that long before any arrow appears. It stops the tool signalling a fakeout on the bar right after a genuine flip, which is the one place the logic would otherwise contradict itself.

Wick or close

Fakeout Type decides what counts as a breach: the bar's high and low, or its close.

High and low is the default and it's the more sensitive of the two: a wick through the line starts the timer. Set it to close and only a closed bar past the line counts, which produces fewer arrows and later flips. Neither is more correct; the wick setting sees the stop hunt as it happens, the close setting waits for it to be confirmed.

What it publishes

Two plotted buffers, one for each trend direction, holding the trailing line and EMPTY_VALUE on bars where the other direction is active. These are readable through iCustom, so an EA can take both the level and the trend state directly.

The arrows are chart objects and aren't readable that way.

Where it's weak

The fakeout state is not persisted per bar. The counter lives in a single running variable, so a fakeout that is in progress at the right edge is not recorded in a buffer anywhere. An EA reading the line sees the level and the direction, not "a breach is currently being evaluated".

Two conditions, one of which is time. Five bars on D1 is a week. The bar limit scales with nothing, so it needs setting per timeframe in a way the ATR condition does not.

The line runs on every tick, not on bar close. The trend commits on the new bar, so history is stable, but the live bar's line and the live arrow can appear and disappear within the same candle. That's the fakeout being evaluated in real time, and it's the correct behaviour for the tool's purpose.

Arrows can cluster. During an extended breach that never quite qualifies, every bar in it gets an arrow. The picture is right and it is not tidy.

Alerts are off by default. Notification type ships as Do not notificate, and the Telegram fields carry placeholders. One alert per bar once enabled.

Questions you'll have

Does Supertrend Fakeout repaint? Closed bars, no: the trend commits on the new bar and the historical line stays put. The forming bar's line and its arrow do move within the candle, which is the breach being judged as it happens.

Why is there an arrow pointing up when price is falling? Because the trend is still up and price has only breached the line. The arrow marks a suspected fakeout, so it points back into the trend, not with the move.

Why didn't it flip when price closed past the line? Neither condition was met. The breach has to last more than five bars or exceed 1.5 times ATR. Anything shallower and shorter is treated as noise.

How is it different from a normal SuperTrend? A normal one flips on any close through the line. This one requires the break to persist or to be deep, and anchors the new line to where the break started.

Best settings for M5? Lower Fakeout Limit from 5. Five M5 bars is twenty-five minutes, which is a long time to hold a position against the line.

Can an EA read the line? Yes. Both trend lines are plotted buffers, so iCustom gets you the level and the direction. The arrows are chart objects and aren't available that way.

MT4? Both platforms are included, one download each. Same two conditions, same anchoring, same buffers.

Support

Message me through the site with a screenshot, the symbol and the timeframe, and I can tell you which condition held a flip back. Updates are included for as long as your subscription runs.

Analysis tool. It places no trades and makes no profitability claim. Past price behaviour is not a guide to future price behaviour.