Super Trend Indicator: Working, Formula & How to Use (2024)

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Super Trend Indicator: Working, Formula & How to Use (2024)

FAQs

Super Trend Indicator: Working, Formula & How to Use? ›

The formula for the super-trend indicator is as follows: Super-trend = (High + Low)/2 + (Multiplier) * (ATR). The super-trend line is plotted on the price chart, which acts as a dynamic level of support or resistance, helping traders and investors make informed decisions about entry and exit points.

How to use SuperTrend indicator effectively? ›

Once you have the ATR, open a chart, enter the super trend indicator and choose the multiplier and periods (ATR number of days). A multiplier is a number that is used to multiply the ATR. Traders typically employ a multiplier of 3 and 10 periods.

What is the best timeframe for SuperTrend? ›

The best supertrend settings for swing trading are usually the 4-hour and 1-day charts, combined with the default 10,3 supertrend line. Additional indicators will be useful for better precision. For instance, you can consult volume based indicator such as the on-balance volume (OBV) to confirm the trend.

What is the best value for the SuperTrend indicator? ›

For intraday trading, you can use the 1-minute scalping or you can also use the 5-minute chart as another useful timeframe to consider while adjusting the Supertrend indicator settings for intraday trading. However, for the best supertrend settings for day trading, you can keep the values of (10,3).

What is the formula for the SuperTrend indicator in Google Sheets? ›

Here is the Super trend indicator formula that helps you calculate this indicator: Down = [(High + Low / 2) – Multiplier] x ATR. Up = [(High + Low / 2) + Multiplier] x ATR.

What is the formula for super trend? ›

The formula for the super-trend indicator is as follows: Super-trend = (High + Low)/2 + (Multiplier) * (ATR). The super-trend line is plotted on the price chart, which acts as a dynamic level of support or resistance, helping traders and investors make informed decisions about entry and exit points.

What is the 2 Supertrend strategy? ›

- Short Entry: When both Supertrend indicators are bearish and the MACD histogram is below zero. - Exit long positions when either of the Supertrends turn bearish or the MACD histogram drops below zero. - Exit short positions when either of the Supertrends turn bullish or the MACD histogram rises above zero.

What does supertrend 7 3 mean? ›

A. Supertrend 7,3 is a specific configuration of the Supertrend indicator, where the settings are typically a period of 7 for the Average True Range (ATR) and a multiplier of 3.

Which indicator has the highest accuracy? ›

Which indicator has the highest accuracy? The Moving Average Convergence Divergence (MACD) indicator is often considered one of the most accurate technical indicators. That is because it uses a combination of moving averages to spot potential buy and sell signals.

What is the breakout strategy of super trend? ›

The Break-Out (BO) SuperTrend strategy attempts to profit from small price break-outs. It is a straightforward day trading strategy. Besides price channels it uses the popular SuperTrend indicator. The BO SuperTrend strategy can be used for market indices, commodities and forex trading.

Is SuperTrend strategy good? ›

The SuperTrend Indicator is a valuable tool for traders interested in identifying market trends and potential entry and exit points. Its simplicity and adaptability make it an excellent choice for traders of all skill levels.

What is the winning ratio of the SuperTrend indicator? ›

According to our calculations and tests, the Supertrend indicator demonstrates a success rate of approximately 67%.

What is the MACD SuperTrend strategy? ›

Overview. The strategy combines the SuperTrend indicator and the MACD indicator to capture small trends for profit. It uses the SuperTrend indicator to determine the current market trend and the MACD indicator as an auxiliary condition for entry and exit. The strategy logic is clear and easy to understand and implement ...

How do you set a super trend indicator? ›

In order to use the indicator, open the chart of a particular stock you want to track and set a time interval of 10 minutes for intraday trading. Any good charting software can be used. Insert supertrend as your indicator and keep the settings as 10 and 3. It is possible to insert your own settings as well.

What is the math behind the Supertrend indicator? ›

Here's the formula for calculating the supertrend indicator: #1 - Average True Range (ATR): Calculate the True Range (TR) for each period: True Range (TR) = Max (where High is the highest price, Low is the lowest price, and Close_prev is the previous closing price)

What are the disadvantages of Supertrend indicator? ›

Limits of the Supertrend Indicator

This could delay your entry or exit if you rely on it. False signals: The indicator is prone to generate false signals, particularly in sideways or “choppy” markets when the price moves don't have a clear trend.

How accurate is the supertrend indicator? ›

The accuracy of the Supertrend indicator is around 67% from our calculation and tests..

Is Supertrend strategy good? ›

The SuperTrend Indicator is a valuable tool for traders interested in identifying market trends and potential entry and exit points. Its simplicity and adaptability make it an excellent choice for traders of all skill levels.

What is the Super Z strategy? ›

The Super Z quantitative trend strategy realizes the judgment and tracking of price trends through the custom trend indicator VHMA combined with the Super Trend indicator. The strategy has good stability and excellent actual effects.

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