What do you mean by Super Trend Indicator?

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Super Trend is a technical indicator that allows you to identify trends and provides you with both buy and sell signals. It may be applied across different timeframes (i.e. 5 minutes, hourly, daily), although you may note that a smaller timeframe may lead to a higher frequency of signals being generated. It usually alternates between two colors: green or red, indicating whether the trend is tilted to the upside or downside respectively. A buy signal is generated when the Super Trend is plotted below the closing price and the color switches from red to green. Conversely, a sell signal is generated when the Super Trend is plotted above the closing price and the color switches from green to red.


Conclusion :

The downside is, a super-trend indicator is more useful in trending markets where there are clear uptrends and downtrends in price. It may not be beneficial when markets are moving side-ways and may throw up false signals triggering wrong trades.  For more efficient signals, super-trend is used in combination with other indicators like moving averages and MACD (moving average convergence divergence).


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