The Super Trend indicator is based on the Average True Range (ATR), a measure of volatility. By incorporating ATR into its calculation, the Super Trend adjusts its position relative to price based on recent volatility levels, thus providing reliable trend signals.

• Average True Range (ATR):
  The ATR calculates the average volatility over a set number of periods. The Super Trend indicator uses this to account for price fluctuations when setting its trend line.

• Trend Line:
  This line appears above or below the price, depending on the direction of the trend. It changes position when a trend reversal is indicated, moving from above to below the price (or vice versa) to signal a new trend direction.

• Multiplier:
  The multiplier is a value (usually 2 or 3) that determines how far the trend line will be positioned from the current price based on ATR. A higher multiplier results in a wider range between the price and the Super Trend line, producing fewer but potentially more reliable signals, while a lower multiplier creates a tighter range, producing more frequent signals but with higher sensitivity.

The Super Trend indicator typically has two main adjustable settings:

• ATR Period:
  The default setting is usually 10 or 14 periods. Shorter periods make the indicator more sensitive to price changes, while longer periods smooth out fluctuations.
  
  
• Multiplier:
  Commonly set to 2 or 3. A higher multiplier widens the distance between price and the Super Trend line, which reduces the number of signals but increases reliability. A lower multiplier brings the line closer to the price, which increases sensitivity but may result in more false signals.