'Supertrend' is a trend-following indicator just like #moving_averages and #MACD (moving average convergence divergence). It is plotted on prices and their placement indicates the current trend.
The indicator is easy to use and gives an accurate reading about an ongoing trend. It is constructed with two parameters, namely period and multiplier. The default values used while constructing a superindicator are 10 for average true range or trading period and three for its multiplier.
"The average true range (ATR) plays an important role in 'Supertrend' as the indicator uses ATR to calculate its value. The ATR indicator signals the degree of price volatility". "A chartist using 'Supertrend' needs to key in two important data points, namely the 'period (ATR number of days)' and the 'multiplier (value by which ATR is multiplied)',".
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The indicator is easy to use and gives an accurate reading about an ongoing trend. It is constructed with two parameters, namely period and multiplier. The default values used while constructing a superindicator are 10 for average true range or trading period and three for its multiplier.
"The average true range (ATR) plays an important role in 'Supertrend' as the indicator uses ATR to calculate its value. The ATR indicator signals the degree of price volatility". "A chartist using 'Supertrend' needs to key in two important data points, namely the 'period (ATR number of days)' and the 'multiplier (value by which ATR is multiplied)',".
http://ibnservicesblog.wordpress.com/
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