In this tutorial, we compare the classic Supertrend indicator with its improved version — ATR BarColor, both designed for NinjaTrader 8.
The traditional Supertrend follows a moving average (like the HMA) at a distance proportional to volatility (ATR).
Its main limitation is that it only has two states — bullish or bearish — which often leads to false or premature signals during market consolidations.
ATR BarColor solves this by introducing a third state: Neutral (yellow bars) and requiring the price to break a strength pivot before confirming a trend reversal.
When both indicators use the same settings, ATR BarColor clearly shows better performance by filtering out market noise and providing more reliable entries once a decisive breakout occurs.
🔹 In this video you’ll see:
• Supertrend vs ATR BarColor (same parameters)
• HMA 21, ATR 14, multiplier 2.618
• How ATR BarColor avoids false flips
• How to use the Neutral state to stay out of choppy zones
✅ Why ATR BarColor is better
• Three clear states: Uptrend, Downtrend, Neutral
• Filters out noise in sideways markets
• Works on any instrument and timeframe
• Fully compatible with Strategy Builder and Markers
• Exposes all signals for automation (entries, exits, trend state)
📊 Automate your setups
All signals are exposed as plots — ready to be used in Strategy Builder or Markers, so you can automate your strategies without coding.
