Description
The SuperTrend Indicator is a technical analysis tool designed by Olivier Seban. It is used to identify market trends and potential entry and exit points in trading. The indicator is based on two dynamic values, period and multiplier, and incorporates the concept of Average True Range (ATR) to measure market volatility. The SuperTrend Indicator generates buy and sell signals by plotting a line on the price chart.
Input Parameters
- ATR: A measure of market volatility, indicating the average price range over a specified period. Used in this indicator to assess market volatility.
- Multiplier: A factor applied to the ATR value in the SuperTrend indicator to determine the distance of upper and lower bands from the current price, affecting sensitivity to price movements.
Use Case:
- Buy/Sell Signals: This indicator generates buy and sell signals by plotting a line on the price chart. When the price is above the SuperTrend line, it indicates a bullish trend, and traders may consider entering long positions. Conversely, when the price is below the SuperTrend line, it suggests a bearish trend, and traders may consider entering short positions.
- Combining with Other Indicators: Traders can use it in conjunction with other technical indicators, such as moving averages or oscillators, to confirm entry and exit signals. This combination of indicators in alignment can help reduce false signals and improve the overall performance of the trading strategy.
This feature can be used in:
- Market Scanner
- Strategy Tester
- Dynamic Alerts
- Multi-Factor Alerts
- Smart Checklist
Do you want to learn more? Check out our Learning Center Article.
May 15, 2024