SuperTrend Indicator: A Trader’s Guide

The SuperTrend Indicator is a popular tool used by traders to identify trends in the market. This comprehensive guide will cover everything you need to know about using the SuperTrend Indicator, including its features, benefits, and how to use it effectively.

What is the SuperTrend Indicator?

The SuperTrend Indicator is a technical analysis tool that helps traders identify the direction of the trend in the market. It uses a moving average and a volatility-based formula to plot the indicator's values above or below the price chart. The Super Trend Indicator is plotted on the price chart and provides traders with a visual representation of the market's trend direction.

How does the SuperTrend Indicator work?

The SuperTrend Indicator is based on two parameters: the Average True Range (ATR) and the Moving Average (MA). The ATR is used to determine the market's volatility, while the MA is used to determine the trend direction. The indicator's values are plotted on the chart as a line above or below the price chart. When the price is above the Super Trend line, it indicates an uptrend, and when the price is below the Super Trend line, it indicates a downtrend.

How can traders use the SuperTrend indicator?

The SuperTrend curve covers the price chart, and when the indicator falls below the closing price, a buying signal is generated and the color of the indicator turns green.

It also suggests that the trend is changing from downward to upward.

Conversely, when SuperTrend closes above the closing price, it generates a signal for sale and the color of the indicator turns red. This suggests that the trend is changing from bullish to bearish. As you can see, it is pretty easy and intuitive to use - the way we love it!

How to use SuperTrend on Finteria trading platform?

On Finteria binary options trading platform, Super Trend indicator can be used to evaluate good signals for buying and selling an asset. See below a quick rundown of this indicator on the platform and an exemplary analysis of the market with this tool.

• Click on the ticker’s icon to change the data layout that is more suitable for technical analysis:

• Pick the f(x) button to see the technical analysis indicators:

• Once clicked, a menu bar will appear with all indicators available on TradingView:

• Once we apply the SuperTrend indicator, we will see red and green lines hovering over the market data. On the real case example of the EUR/USD instrument, we got a green uptrend line going steady, and yet there is a breakpoint at which the uptrend moved to a downtrend line - and this is the moment for selling.

• Let’s see another example of the BTC/USD instrument. On the screenshot below, the picture is more colorful as we have rapid trend moves: the first breakpoint indicates a buying signal, and the latter one calls for selling. It is noteworthy that if you would follow SuperTrend’s advice, you’d have a 21% profit.

Conclusion

In conclusion, the SuperTrend Indicator is an excellent tool for traders who want to improve their trading performance and increase their profits. With its easy-to-use interface and powerful features, the Super Trend Indicator can help traders make informed decisions and achieve their financial goals. If you are a trader looking to improve your trading performance, consider using the Super Trend Indicator in your trading strategy.