📌 What is the Supertrend Indicator?
The Supertrend Indicator is a powerful technical analysis tool used by traders to determine the market trend. It works by combining ATR (Average True Range) and Moving Averages, making it highly effective for identifying buy and sell signals.
👉 Key Uses of Supertrend :
Identifying market trends
Generating clear buy & sell signals
Setting stop-loss & target levels
Reducing market noise
📊 How is the Supertrend Indicator Calculated?
The Supertrend indicator is based on two key inputs:
ATR (Average True Range): Measures market volatility
Multiplier: Determines sensitivity (default is 3)
🔹 Supertrend Calculation:
Upper Band = (High + Low) / 2 + (ATR * Multiplier)
Lower Band = (High + Low) / 2 - (ATR * Multiplier)👉 When the price is above the Supertrend line, it indicates an uptrend (BUY). 👉 When the price is below the Supertrend line, it indicates a downtrend (SELL).