SuperTrend indicator

[ngocanhno110265]

Trend indicator SuperTrend was created on the basis of ATR and CCI. It is an excellent indicator of trend direction. It can be used as a foundation of the trading system that is based on following the trend.

 

Formula

 

UpperLevel=(High+Low)/2+Multiplier*Atr(Period);

LowerLevel=(High+Low)/2-Multiplier*Atr(Period);

Trading use

 

The SuperTrend indicator is build upon on two indicators – ATR and CCI. CCI (the standard parameter is 50) points the direction of trend movement, meanwhile ATR is used to determine the levels of indicator. If CCI is above 0, SuperTrend either rises or moves horizontally (depending on ATR). If CCI is negative, SuperTrend falls (depending on ATR also).

One of the possible ways to use this indicator is to enter the market after correction paying attention to the color of SuperTrend: if it changed from red to green (it means the trend turned from descending to ascending), wait for the first descending correction and open buy position. Open sell position if the indicator changed its color from green to red: wait for the first ascending correction and sell.

It should also be noted that SuperTrend can indicate the short-term support and resistance levels. But one should carefully study them before using and only if they are necessary. More accurate data of this type is produced by Tenkan and Kijun lines of Ishimoku indicator

 

supertrend.zip

[willy]

this is good indicator in my opinion and i do like these indicators but i think all indicators like this one needs a strong trend because the name of the indicator depending on the trend therefore beware when you enter the trade you must have good trend 

[standart]

this indicators quite simple to implement and able to give traders good trading result. in my opinion, works best if traders use this indicators in high time frame. too many ups and downs in small time frame which make this indicators give repaint trading signals.