Super Trend

Notes:

These indicators and concepts are specifically designed for TradingView.com

How to apply:

Go to INDICATORS and type in: Supertrend

How to use:

To trade using the Super Trend Indicator, traders typically look for buy signals when the price is above the upper band (supertrend turns green) and sell signals when the price is below the lower band (band turns red). However, it is important to consider other factors such as support and resistance levels, volume, and overall market conditions before making trading decisions. There are various variations of the Super Trend Indicator that have been developed by the trading community. Some of these include using different multipliers or adding additional filters to the signals. It is important to thoroughly backtest any variations before using them in live trading and to ensure that they fit your trading style and risk tolerance.

General Rules for Super Trend across the community:

Entering a trade:

1. Look for the Super Trend indicator on your trading platform or charting software. It consists of dots or lines that appear above or below the price chart.
2. When the Super Trend indicator changes its position from below the price chart to above it, it indicates a bullish signal or a potential buying opportunity.
3. Conversely, when the Super Trend indicator changes its position from above the price chart to below it, it indicates a bearish signal or a potential selling opportunity.
4. Once you identify the change in position, consider entering a trade in the direction indicated by the Super Trend indicator. For example, if it switches from below to above, consider buying the stock or asset.

Exiting a trade:

1. To determine when to exit a trade, closely monitor the Super Trend indicator.
2. When the Super Trend indicator changes its position opposite to your trade (e.g., from above to below for a long position or from below to above for a short position), it suggests a potential trend reversal or a signal to close your trade.
3. Alternatively, you can set a predefined profit target or a stop-loss level to exit the trade. For example, if you're in a long position (bought the stock), you may decide to sell when the price reaches a specific target or falls below a certain level to limit potential losses.

How to calculate:

The Super Trend Indicator is a technical analysis tool that is used by traders to identify the direction of the trend and potential entry and exit points in the market. It is calculated based on the average true range (ATR) and the moving average of the price.

To calculate the Super Trend Indicator, follow these steps:

1. Determine the period for the ATR and the moving average. This could vary based on your trading style and time frame.
2. Calculate the average true range (ATR) for the chosen period. The ATR measures the volatility of the market and is calculated using the true range (TR), which is the greatest of the following:

• Current high minus the current low
• Absolute value of the current high minus the previous close
• Absolute value of the current low minus the previous close

3. Calculate the basic upper band and lower band of the Super Trend Indicator using the following formulas:

• Basic Upper Band = (High + Low) / 2 + Multiplier * ATR
• Basic Lower Band = (High + Low) / 2 - Multiplier * ATR

where Multiplier is a value that determines the distance of the bands from the moving average.

4. Calculate the final upper and lower bands by comparing the basic bands to the previous period's final bands and choosing the highest and lowest values. This helps to smooth out the bands and reduce false signals.

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