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How to use Super Trend Crossover to find buying and selling opportunities



Before we stars with Super Trend crossover let me tell you something regarding what is Super trend? Super trend is an indicator and has many advantages over other indicators, super trend is also known as ATR (Average True Range). Super trend is a moving average of true range generally 14 days. Super trend was originally developed for true range but can also be apply to stocks or nifty.


ATR is not a directional indicator like RSI, it is a volatility indicator. It can be calculated using following formulas

Current Super trend = [(Prior Super trend x 13) + Current TR] / 14


Using super trend indicator we can find buying and selling opportunities in stock market. According super trend strategy if the value of ATR goes up by crossing the candle one can say it is pure selling opportunity. If the value of ATR goes down by crossing the candle one can say it is pure buying opportunity.


You can see selling opportunity from image when super trend is going high after crossing the candle. Similarly you can see buying opportunity when super trend goes down after crossing the candle. 





This post first appeared on Market Strategies, please read the originial post: here

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How to use Super Trend Crossover to find buying and selling opportunities

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