What is super trend indicator?

The SuperTrend indicator is a technical analysis tool used to identify the direction of a current market trend. It was developed by Olivier Seban in 2008.

The SuperTrend indicator is based on two components: the Average True Range (ATR) and the Moving Average (MA). The ATR measures the volatility of an asset, while the MA smooths out the price fluctuations over time.

The SuperTrend indicator is calculated by adding or subtracting a multiple of the ATR from the MA. The multiple is usually set to 2, meaning that the SuperTrend indicator will be two times the ATR above or below the MA. The resulting line is plotted on the price chart.

When the price is above the SuperTrend line, it is considered to be in an uptrend. When the price is below the SuperTrend line, it is considered to be in a downtrend. Traders use the SuperTrend indicator to identify entry and exit points for their trades.

The SuperTrend indicator can be used on any time frame and for any asset, such as stocks, forex, and commodities. However, like all technical indicators, the SuperTrend indicator should not be used in isolation and should be used in conjunction with other indicators and analysis.