Super Trend indicator is a very simple indicator. The buy and sell signal of this indicator changes to flips over the closing price. A buy signal is generated when the stock/index price turns greater than the indicator value and sell signal is generated when the stock/index price turns lesser than the indicator value. This is a very trader friendly indicator and it is used widely by the stock market traders all over India.
Usage of Super Trend Indicator
The traders can know more about the Supertrend indicator, then they can find it in the STUDIES section of Zerodha Kite. This indicator also available in Kite mobile App. The default Period is 7 and Multiplier is 3. You can set the value of this to high and low. In this indicator on to any charts likes daily, weekly, monthly or intraday you can attach. You can also check how we attached the Supertrend indicator in Reliance Industries share price chart.
SuperTrend is a trending indicator and this is like all trending indicators. It works well in highly trending markets in uptrends and downtrends. This indicator is easy to use and gives an accurate reading about an ongoing trend. It is constructed with two parameters, period and multiplier in which the most commonly used ones are 10 and 3.
Parameters of The Indicator
The default values used while constructing this indicator are 10 for average true range or trading period and three for its multiplier. The SuperTrend indicator when compared to a regular Moving Average trading system generates fewer false signals, for this reason, the super trend indicator is preferred over a Moving Average trading system.
We have already covered this technical indicator developed by Olivier Seban in details on our website. You can find more advanced articles on this topic here. Still, this post can be a starting point for those who are new to the stock market and want to start using a simple trading system.
Categories: Technical Indicators