What is Super trend
The super trend is a technical indicator which plotted on price and shows us the market trend. It is easy to use and gives a correct data in the current situation.
Intraday Traders are using it commonly along with RSI and MACD. The super trend automatically gives you buy or sell signal in a live market.
It is similar to MACD (Moving average convergence divergence) indicator. It is placed on price and indicates the current market trend. It depends on two parameters one is period and the other is a multiplier. While using the super trend the default value is 10 for average range or period and 03 for the multiplier.
The average true range is an important role in super trend when indicator start calculates of its ATR Value. The ATR indicator signals are price volatility.
When the indicator starts plotting on top of closing price or below the closing price then buy or sell signal automatically generate in that indicator.
When super trend closes above the price buy signal is generated and when super trend closes below its closing price then sell signal is automatically generated.
In super trend when the price goes up or down from its closing price then automatically generated buy signal in green colour and sell signal in red colour.
Leave a Reply