What is Supertrend Indicator? How to Use It - Investallign

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What is Supertrend Indicator? How to Use It
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Supertrend Indicator
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What is Supertrend Indicator?

• Are you an intraday trader? Of course yes
  thats why you are here.  its probable that you
  utilize technical indicator for spotting
  transactions by using different indexes.
  ASupertrend indicator is just one, which may
  provide you exact buy or sell signal in a
  trending market.
• As its name implies,Supertrend is a
  trend-following index. Is very easy to use?
   Answer is its very easy to use.   Its plotted
  on Price and their positioning indicates the
  present trend.
• Its indicate combinations of momentum and price
  action ( volatility ). SuperTrend indicator is
  created by Olivier Seben. Its works perfectly all
  momentum indices and instruments.

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What is Supertrend Indicator?

• The index is simple to use and provides a precise
  reading about a continuous trend. Its assembled
  using two parameters, namely multiplier and
  period. The default values used while building a
  superindicator are 10 for average true range (
  ATR ) or trading interval and three because of
  the own multiplier.
• The average true range (ATR) plays a significant
  part inSupertrend since the index utilizes ATR
  to figure its value. Starts plotting either in
  addition to the final cost or below the final
  price. A buy signal is generated if
  theSupertrend closes over the purchase price
  and a sell signal is generated if it closes below
  the final price.

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What is Supertrend Indicator?

• ATR calculate value of price volatility. Its
  indicate current market trend. Its quite similar
  of other trending market indicators like moving
  average, swing indicator etc . Just follow and
  ride on current market trend because trend is
  best friend of traders.
• Mathematical Formula of Super Trend
• BASIC UPPERBAND    (HIGH LOW) / 2 Multiplier
  ATRBASIC LOWERBAND   (HIGH LOW) / 2
  Multiplier ATR
• FINAL UPPERBAND IF( (Current BASICUPPERBAND  lt
  Previous FINAL UPPERBAND) and (Previous Close gt
  Previous FINAL UPPERBAND)) THEN (Current BASIC
  UPPERBAND) ELSE Previous FINALUPPERBAND)

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• SUPERTREND IF(Current Close lt Current FINAL
  UPPERBAND ) THEN Current FINAL UPPERBAND ELSE
  Current  FINAL LOWERBAND
• Quicker and easier is todays mantra and Thats
  What supertrend Being a intraday trader, its
  hard to remain aloof from using indexes. When
  there are many indicators offered for rapid
  technical evaluation of the transactions, here
  well talk about the supertrend index. If youre
  already using different signs, its fairly
  straightforward to follow this one.
• Different time frames. It functions for stocks,
  forex, and stocks. Its employed in a quarter
  hour, hourly, weekly, and daily graphs. Depending
  on the parameters of multiplier and interval, the
  index uses 3 to multiplier and 10 for ATR as
  default values. Average True Range is represented
  with the amount of times while the multiplier is
  the value where the scope is slowed.

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• Open a Chart of instrument you want to
  apply SuperTrend indicator  Set time frame 1 min
  , 5 min , 10 min or 15 min for intraday trading
  or if you want to trade positional then 30 min or
  1 hr  is best time frame for you.
• Apply indicator on it and set parameter ( Default
  parameters is 10 and 3 ) as per instruments
  volatility. Once indicator plotted you will find
  below screen type chart on your screen. Super
  Trend indicator is always in trade indicator
  means trade and reverse. But I suggest always
  keep stoploss as per your money management
  strategy.
• Download Amibroker AFL  SuperTrend Indicator
• ( Open txt file Copy code  Open Amibroker
  Formula Editor , paste code there and save )
• You can also use Kite SuperTrend indicator
• Streak ( coding without Algo ) By Zerodha
  SuperTrend Indicator Formula find here.

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• Pro of Supertrend Indicator
• Trend indicator
• Accurate Signal on Trending chart.
• Implemented on various time frame.
• Its Free no copyright by Developer.
• Extremely Easy to use on different charting tool.
• Cons of Supertrend Indicator
• Only works on trending market.
• Side wise market gives number of false call.

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