Trend Pullback Reversal TPR indicator vs supertrend indicator

The main difference between Trend Pullback Reversal TPR indicator and Supertrend indicator is that TPR will not consider pullback as a breakout.


TPR has its unique algorithm to detect possible reversal signals in sideways.





Let's look at some examples.

In the chart below, TPR considered it as a downtrend before the gap, but Supertrend showed it as a uptrend and give sell signal after the gap. If you were to follow Supertrend and hold a long position before the gap, you could lost a lot.





The following example shows that TPR filtered out some noises in a sideway.

The upper chart is TPR and the lower chart is Supertrend. You can see that where Supertrend gave sell signals but TPR was still in uptrend and gave a possible reversal signal after a pullback.

The reason is that Supertrend is more sensitive than TPR, so it will change trend whenever there is a breakout of its trend line, but in sometime, a pullback can also break through the trend lines. So it's important to distinguish a pullback and a breakout.

In the charts below, supertrend changed trend 5 times, but TPR only changed once. When TPR gave a reversal signal at the pullback, supertrend gave a sell signal.