Supertrend Indicator Explained

Supertrend Indicator Explained


Supertrend Indicator Explained Strategy with David Moadel hello friends and welcome to looking at
the markets with David Modell would you like a super easy super simple trend
indicator well this is the super trend indicator it’s not necessarily easy to
find on the Internet but I did find it with the help of one
of my listeners and viewers so I want to thank him for that I appreciate it very
much so let’s talk about it and by the way I just want to let you know real
quickly that if you would like help with indicators and putting together a
trading or investing plan I do offer coaching and you can email me for the
coaching at David Modell at gmail.com so let’s talk about the super trend
indicator this is an interesting one you might not know the super trend indicator
is a simple and easy to use indicator that gives a reading of the ongoing
trend the super trend indicator uses the Average True Range which is a type of
volatility indicator to calculate its value and I did create a video on the
Average True Range if you’d be interested in that now I did not find
the super trend indicator on some of my favorite charting websites like bar
charts comstock charts calm trading Viacom but I did find it on
investing.com which is powered by trading view dot-com
interestingly enough now it is built with two inputs or parameters the first
one is the period or length and the other one is the multiplier or factor
the default settings are 10 for the period and 3 for the multiplier and I
could just use those unless you have a reason to change it and the way it works
is very simple it’s bullish which means you can buy it if you want to when a
candlestick closes above the super trend line and the line will also line itself
will turn green and it’s bearish or possibly a sell
signal or short signal if you want to when a candlestick closes below the
super trend line and the line will turn red and that’s about as simple as it
gets now like most trend indicators the super
trend indicator tends to work better in trending markets than in sideways or
choppy markets and some traders use the super trend indicator along with other
indicators such as the RSI the stochastics etc and I’ve made videos on
all those so feel free to check those out
also some traders use the super trend indicator line as a support or
resistance or as a sort of a trailing stop loss for an existing trade and so
there a number of ways to use it but again you know I always say this that no
indicator works 100% of the time they’re not perfect so please make your own
decisions use use your own discretion and use like I said other indicators
with it if you want to so let’s take a look at investing.com where I did find
the indicator the super trend indicator and all you have to do is go to
investing.com and go to charts I’m on the daily candlestick chart for Apple
stock but if you’re an intraday trader you can use the 1-minute candlestick
chart or the 2 minute the 5-minute whatever you prefer and so how do you
get there well you go to indicators here it is and then you go down this looks
exactly almost exactly like trading Viacom except interestingly enough
trading view did not have super trend under indicators and investing calm
powered by trading veoh.com there it is has super trend indicator
just click on that there it is alright and there it is and you know I’m
accustomed to seeing it with red and green so I’m gonna use red and a nice
bright green there so that you can see it more easily
there we go okay and there we go that’s what I’m accustomed to seeing and so as
we discussed when the sideway when the price actions sideways
yeah it’s you’re gonna get chopped up as they say you know you’re gonna end up
selling and then buying and selling right after that and so you know you
might run up commissions and fees you might end up taking taking a lot of
small losses but at least if you’ve sold here you would avoid all this you know
this big waterfall here as I like to call it all this downward price action
okay so that’s that’s good at least and then
if you had entered here you get to enjoy the ride up here and so it’s kind of
neat with the changing of the colors of the line I don’t know if you need that I
mean it just turns green when the candle closes above it and it just turns red
when the candle closes below it but if the color of the line helps you that’s
cool all right and you know we’re not going to go over the whole formula that
they use but again it’s based largely on the Average True Range and other factors
all right so there it is I mean you get to enjoy the run the runs up and you get
to avoid all the big you know the big waterfalls as they say but when it’s
sideways it’s not so good because you’re gonna be doing a lot of buying and
selling and you’re not gonna make a lot of money that way all right so is it my
favorite indicator I don’t know about all that you might want to combine it
with other things that can help you such as RSI stochastics things like that and
I have videos on all those things so feel free to check out my technical
indicators playlist and hey if you liked this video if it turned you on to
something new something different then please give this video a thumbs up on
YouTube and leave comments if you’d like to let me know what you think of this
indicator have you tried it do you like it I don’t know maybe you do and also
please subscribe to my channel if you haven’t done that already
and hit that notification Bell on YouTube
and that way you’ll be notified by YouTube whenever I put out another video
like this one and again if you’re interested in that coaching feel free to
email me at David Modell at gmail.com that’s the super trend indicator hope
you liked it thanks a lot I appreciate it I’ll talk to you again soon

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About the Author: Maximilian Kuhn

6 Comments

  1. Thanks very much …dear teacher…Very nicely and simply made ,,,just great..thanks very much for listening to me….

  2. You have The Excellent presentation style. This explaination is Superb! , everything abt Supertrend described Perfectly, Thank you really good presentation! I really like how you teach. Really, You are Genius !!

  3. You have so many amazing information with indicators as a newbie i am a bit overwhelmed but i want to use all of indicator u are teaching i do like this supertrend one but what are ur top 3 favorites tho but u do always have very informative videos hope u hit 50k 100k subscribers lol Have a great week between my regular work i watch ur videos i cut all my regular tv esp korean dramas i used to watch a lot lol Mahalo

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