Super Trend Indicator, Alternative Tool for Profitable Trade
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Just saw supertrend indicator on https: I have heard on a lot of forums about this, but don't know how to use this. The super trend indicator like all trending indicators it works well in trending market like in uptrends and downtrends ,the Buy and Sell signal changes as soon as the indicator flips over the closing price.
When the Supertrend closes below the Price, a Buy signal is generated, and when the Supertrend closes above the Price, a Sell signal is generated. Before understanding the supertrend indicator, understanding the ATR is necessary as super trend employs ATR values to calculate the indicator values. I'll assume you know ATR and how to use the same. The supertrend indicator is plotted over the price chart of the stock or the index. The indicator line changes its color between green and red based on the price moment in the underlying.
When you select Supertrend indicator from the list of studies you will be prompted for two inputs — Period and Multiplier. Period refers to the ATR number of days. Supertrend indicator trading system default value on Kite is 7, which means to say that the system will calculate the ATR value for the last 7 days.
You can input any value you deem suitable. The multiplier refers to a value by which the ATR will get multiplied. The supertrend indicator trading system value on Kite is 3, so whatever is the value of ATR, supertrend indicator trading system will get multiplied by 3. Multiplier is a crucial input for Super trend.
I would suggest you keep this value between 3 and 4. Notice how the indicator changes the color as the price moves. The Supertrend indicator trading system indicator was supertrend indicator trading system by Olivier Seban. He suggests not to take position immediately after a change of direction, but rather during a consolidation period where the indicator gets flat. Supertrend is a trend following indicator and when it changes direction it doesn't mean that a new trend is starting.
So according to this, I would suggest supertrend indicator trading system put pending orders as soon as the Supertrend line gets horizontal:. Also, one way to confirm if there is a trend is to check if price is on the same side of Supertrend on the next higher timeframe.
With all supertrend indicator trading system considerations, that strategy should be a winner overall despite a few losses. Supertrend helps catch the big moves and if applied on more than one financial instrument with proper money management, it is likely to give positive results all the time. I saw a study on the web suggesting to use a 9 period and 7. That supertrend indicator trading system give less space between price and the Supertrend line wich can be used as a stop loss level. Sir, does this indicator kinda repaints?
Karthik Thank you so much, beautifully explained. Karthik y resource for understand ATR values. Can you please share. How to use supertrend indicator? What should you know? At this stage, the indicator color turn green and you can also see a crossover of the price versus the indicator price greater than indicator value Once the long position has been established, the trader supertrend indicator trading system advised to hold the position till the price closes supertrend indicator trading system the green line.
At this stage, the indicator color turn red and you can also see a crossover of the price versus the indicator price lesser than indicator value The sell signal can be used to initiate a fresh short or exit long.
So the trader should use his discretion here Once the short position has been established, the trader is advised to hold the position till the price closes below the green line. Once the indicator is plotted, this is how it appears on the chart — Notice how the indicator changes the color as the price moves.
Good luck and stay profitable! So according to this, I would suggest to put pending orders as soon as the Supertrend line gets horizontal: Bring the pending order down to the high of the most recent candle if entry signal is not triggered. Bring the pending order up to the low of the supertrend indicator trading system recent candle if entry signal is not triggered.