Getting Free Buy/Sell Signals For Trading
The Supertrend indicator is a popular tool used in technical analysis to help traders identify ongoing trends in the market. This ATR based trailing stop indicator offers the flexibility to change the ATR calculation method from the settings, with the default method being RMA, and an alternative method being SMA.
This indicator is easy to use and offers an accurate reading of an ongoing trend. It's constructed with two parameters - period and multiplier. The default values for these parameters are 10 for the trading period and 3 for its multiplier.
The Supertrend indicator uses the Average True Range (ATR) to calculate its value, and the ATR indicator signals the degree of price volatility. Buy and sell signals are generated when the indicator starts plotting either on top of the closing price or below it. A buy signal is generated when the indicator closes above the price, and a sell signal is generated when it closes below the closing price, indicating a shift from ascending to descending mode.
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