![]() ![]() The supertrend indicator calculation is shown below –ĭown = (high + low) / 2 – multiplier x ATR Best ways to pick stocks for Intraday Trading.Super Trading Strategies with Supertrend.Higher settings will remove the noise from the market at the risk of less trading signals.Smaller settings can make the indictor more reactive to the price which means, more signals.As well, the more settings you change can lead to a trading system that is over-optimized for that point in time. There is no best setting for any trading indicator. ![]() You should note that any changes to these numbers can affect the use of the Supertrend indicator. The default parameter is a period of 10 and 3. What are the Parameters for the Supertrend Indicator? Using supertrend along with a stop loss pattern is the best way for earning the best wealth in trading. For a short position, you can put it at the red indicator line. However, while you using this indicator, you should not avoid putting your stop loss.įor a long position, you can put stop loss right at the green indicator line. You can also insert your own settings as well. After opening the chart insert supertrend and keep the settings as 10 and 3. How to Use the Supertrend Indicator?įor using this indicator, you need to open the chart of a particular stock that you want to track and set a time interval of 10 minutes when doing intraday trading. The average true range (ATR) plays a key role in ‘Supertrend’ as the indicator uses ATR to compute its value and it signals the degree of price volatility. When we construct the Supertrend indicator strategy, the default parameters are 10 for Average True Range (ATR) and 3 for its multiplier. It is a very simple indicator and is constructed with the help of just two parameters- period and multiplier. It is plotted on price and the current trend can simply be determined by its placement vis-a-vis price.
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