Trend Pullback Reversal TPR indicator vs supertrend indicator custom NinjaTrader NT8 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 an uptrend and give sell signal after the gap. If you were to follow Supertrend and hold a long position before the gap, you could lose a lot.

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

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 some time, 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.