In TradingView you can find an unlimited number of tools and indicators that you can use for technical analysis. From originally developed technical indicators to customized community-based useful indicators, you can pick the best tool that suits your trading strategy. All types of indicators have their own applications and utility as per market conditions.
Supertrend Indicator is one of them that you can use in your intraday as well as short-term trading strategy. However, there are already various indicators you can add in TradingView like RSI,MACD, Fibonacci Retracement,Volume Indicators etc. you can use to analyse the market or stock trend to enter into trade. But as the name suggests a Supertrend indicator can be very useful and best of all you can use it individually or in combination with others.
Also Read: How to Add, Read Use Best Volume Indicator in TradingView
Yes, today we are going to talk about this Supertrend indicator that comes with unlimited features in TradingView. It is a trend-following indicator based on the Average True Range that you can use to identify changes in trend direction and to position stops. So, let’s talk about this super indicator in more detail and how you can use this in TradingView for trading.
What is Supertrend Indicator?
The Supertrend is a trend-following indicator that overlaps on the main chart structure in TradingView like candlestick chart patterns and the plots created by this Supertrend indicator show the current trend in the stock price or market index movement.
Also Read: How to Find Trending Stocks for Intraday Trading: Ten Rules
You can also use the Supertrend indicator with different time periods like intraday, daily or weekly etc. and on the different types of underlying assets. You can apply this for different ranges from the last three hours to the previous three months.
The Supertrend indicator combines many periods, into one that helps to know whether the trend likely to continue further or not. And when two or more time frames overlap, it indicates that the trend is likely to further continue in future. However, the calculation of a single line in the Supertrend indicator combines trend detection and volatility.
How to Add Supertrend indicator in TradingView?
Adding the Supertrend indicator in TradingView is very simple a few steps away you can add this to the TradingView chart. From the indicator section in TradingView, you can apply the Supertrend. For the stepwise guidance follow the steps given below.
What is the Best Setting for a Supertrend Indicator?
However, the Supertrend has various inputs that you adjust as per your trading strategy. And when you adjust these settings the Supertrend indicator becomes more sensitive to price changes. Though the ideal settings for the Supertrend indicator are 10 and 3 for periods and multiplier, respectively, for the Supertrend inputs, you can adjust atrLength and multiplier as per the recommended settings given below.
Best Setting for Supertrend Indicator in TradingView:
- The atrLength setting is the lookback length for the ATR calculation;
- Multiplier is the ATR that is multiplied by to offset the bands from price.
You can adjust or change the settings in the Supertrend but keep in mind when you do that, the indicator will respond more to price changes with smaller settings that can give more signals. While higher settings, will reduce the market noise but can give you only limited trade signals.
How to Use Supertrend Indicator in TradingView?
You can not only use the Supertrend indicator to know the trend in the price movement, but you can also use it to get the signal for creating the long or short positions in the underlying assets. As per the expert’s view, when the price goes below the indicator curve, the line becomes red and indicates there I downtrend running in the underlying asset.
While, on the other hand, when the price goes above the curve, the indicator becomes green, giving the signal of uptrend. However, after every closing below or above the Supertrend, a new trend is visible in the price movement of an underlying stock or market index.
And based on these changes in the Supertrend line you can create the long or short positions. When the Supertrend line goes below the closing price and turns green a buy signal is generated, conversably when the Supertrend line closes above the closing price and becomes red, you can go for short-selling or create the sell position in the stock for trading.And based on these changes in the Supertrend line you can create the long or short positions. When the Supertrend line goes below the closing price and turns green a buy signal is generated, conversably when the Supertrend line closes above the closing price and becomes red, you can go for short-selling or create the sell position in the stock for trading.
Supertrend Strategy TradingView
To make your trade more profitable with the right strategy, you need to follow the Supertrend strategy in Trading that is based on the Supertrend indicator.The simple Supertrend strategy you can follow is that enter into the long position when the Supertrend changes its position from being above the chart to being below the chart.