[Music]
greetings traders and welcome back to
another in-depth with chris episode have
you ever wondered why so many traders
gravitate towards technical indicators
to aid in their daily trading well the
real reason behind that should be of no
surprise it's that we as traders do like
to have new ways to see things or
alternative methods to view the
information that we're already seeing
indicators can provide us an insight of
something that we may not be seeing with
naked charts and for that reason it can
give us a competitive advantage an
indicator out there that exists in the
world today is called the super trend
indicator and it's been around for some
time and i do quite like it because of
how simple it is so today we're going to
discuss exactly what the supercharged
indicator is so after all of this you'll
have an idea of whether or not it's
worth investigating yourself let's dive
on into that material and learn about
the super trend indicator
it should be of no surprise that most
intraday and day traders do prefer to
apply technical analysis techniques in
their daily trading activities as well
as utilize technical indicators to help
them get a better read on the market the
one that we're talking about today
technical indicator that is is going to
be the super trend the super trend
indicator and the super trend indicator
is a technical analysis tool that is
going to help identify strong upward and
downward trends the indicator uses
previous prices as input and compares
the current price with the indicators
line to determine the future price
trajectory the supertron indicator is
beneficial in trending markets but it
may be unreliable to measure and pay
attention to during periods of
consolidation it is often used alongside
other technical indicators like the
exponential moving average which we
always refer to as an ema
if you're interested in the exact math
of how the super trend indicator comes
about generating its information that
information will be available to you in
our article but it is relatively boring
and not needed because the indicator is
going to do that exact math for you
while you're using it but what we should
understand are the settings or how to
set this indicator up and it is very
straightforward to set up the supertrend
indicator on a chart because it uses the
same scale as the price chart that you
have it set up on the up and down bands
are superimposed on the same chart so it
gives its read in a very clean and
concise way directly on top of where
price is being listed the default
settings are going to be an atr length
of 10 and a factor of three so if you
see ten and three you're probably good
to go if you're just starting off with
your super trend indicator i strongly
recommend getting to know and understand
how changing these settings affects the
reads that it's being displayed on your
chart during particular times in the
market you may want to adjust them but
once again it's very personal preference
and you're not going to know until you
monkey around with it but this is very
simple because there's not a whole lot
of stuff that we can really adjust with
this
the strategy going on
behind the scenes with the super trend
indicator
is going to be relatively easy to read
as well so we're trying to look at the
lines to determine if the asset needs to
be bought or sold a green line is meant
to indicate areas where buying is
suggested whereas red areas are going to
be suggested selling areas by the
indicator so looking at this chart
we can see when the super trend
indicator shifts from red to green there
is a strong upwards trend when the line
turns red the price drops you can use
the relative strength index as an
additional tool if you're looking to
really generate a read and validate the
signals that you're getting from the
super trend indicator and it is quite
common that traders will mix the super
trend indicator with the rsi with the
two areas marked one is red one is green
we can see that the super trend turns
red from green the rsi when it's doing
this is also above 74. because the rsi
is above 74 this is another signal for a
price drop in the subsequent few
sessions that we see here the price goes
down similarly in the green segment the
superchat indicator is now turning from
green to red and the rsi down here is
close to 25 which by standard rules is a
clear buying signal the concept here is
that we can use other technical
indicators like the rsi to confirm the
strength or expected power of the move
that is coming if the superchat
indicator is in agreeance with something
like the rsi it is now massively
increasing the type of potency that that
signal may have for us
some of the main advantages with the
super trend indicator really stem around
the fact that it is just so darn easy to
interpret you throw the indicator on
your charts which by the way is
generally free most platforms are gonna
have it and they're not going to charge
you to use it it's been around for a
while it's time proven and on top of
that it's hard to get confused with if
you have a green line it's indicating an
uptrend if you have a red line it's
indicating a downtrend if you see a
switch from one to another you've got an
opportunity to look for a trade entry if
you're confirming that with outside
analysis
the good news about the super trend
indicator is during trending markets
it's honestly very accurate the problem
with the superchain indicator is if
you're in a consolidation period or the
market is ranging sideways and not
really showing any type of trend the
super trend indicator can throw off a
lot of false reads so keep that in mind
if you do go on and use it but if you
become good at identifying trending
markets you throw the superchat
indicator on in those scenarios you
might be very happy with what you find
play around with it it's very hard to
mess up because as we discussed there's
just not that many settings in general
it's very plug and play green is up red
is down and a switch from one color to
the other means that maybe there's a
reversal in town good luck out there
happy trading i'll see you all very soon
[Music]
[Applause]
[Music]
[Applause]
you