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