For intraday traders who need to act quickly for the order placement of their stocks, a super trend indicator can be a good option as it helps in quick technical analysis. This indicator will help decide when to enter or exit positions. Read on to learn more about the concept of super trend indicator.
Super trend indicator connects different time frames ranging from the past three hours to three months to check whether the stock trend will continue. It includes 10 different tools that work as one indicator to monitor 200 stocks all at once. If two or more time frames overlap, it indicates that the trend may continue in the future.
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The super trend indicator works on the wave principle, predicting the price movement of stocks.
The super trend indicator depends on two parameters: period and multiplier. To understand how these parameters, affect the working of indicators, traders must know about the Average True Range (ATR).
Once you get ATR, enter the super trend indicator and choose the periods (number of ATR days) and multiplier. This is how the two parameters and ATR affects super trend indicator.
Super trend indicator formula is as follows:
Upper band = (high + low)/2 + multiplier x ATR
Lower band = (high + low)/2 - multiplier x ATR
A super trend indicator helps traders make smart moves while trading in the stock market. These indicators give precise and reliable insights to gain profit by buying stocks at support levels and selling them at resistance levels.
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