Tuesday, August 28, 2012

Supertrend Indicator - for catching trends with effective stoploss

Supertrend Indicator on 5 min Nifty futures chart Copyright Suresh Gundappa 2012

SuperTrend was developed by Olivier Seban , This indicator has the enormous advantage of working on all the time bases and all media.
you can use on equities, futures or forex, as well as weekly in 5 minutes. It is ideal to accompany the trends and optimize your output.
SuperTrend moving above or below the price depending on the trend developed. He repositioned based on the closing day, which has the main advantage to filter false signals that may occur when the trend slows or during periods without trend.

SuperTrend is calculated from a coefficient applied to the average volatility of the last candlesticks or bar charts according to the display mode.
Although the author recommends using the parameters 3 and 10, respectively for the multiplier and the number of candlesticks taken into account to calculate the average volatility, you can adjust them to your needs or affinity.
As the SAR Wilder SuperTrend accompanies the award as a follower stop except that it does not progress or does not close on price for the areas of advanced horizontal.This gives more space and time for prices to move, giving you the opportunity to capture a larger movement. You can use it as an indicator of output when this change of direction or position of the stop loss.
Generally it is preferable to focus on positions where buyers SuperTrend evolves below the price and hand it is preferable to take only short positions when SuperTrend evolves over prices.

Metastock formula for supertrend indicator.

Factor:=Input("Factor",1.00,10.00,3.00);
Pd:=Input("ATR Periods",1,100,10);
Up:=MP()+(Factor*ATR(Pd));
Dn:=MP()-(Factor*ATR(Pd));
Td:=If(Cross(C,LLV(Up,13)),1,If(Cross(HHV(Dn,13),C ),-1,PREV));
Dnx:=If(Dn=HighestSince(1,Cross(Td,0),Dn),Dn,PREV) ;
Upx:=If(Up=LowestSince(1,Cross(0,Td),Up),Up,PREV);
ST:=If(Td=1,Dnx,If(Td=-1,Upx,PREV));
ST

Regards




14 comments:

Unknown said...

Which software has supertrend indicator.
What is the cost of the same?
Whether any trial is available?
Regards
bhushan

Unknown said...

Respected Suresh Sir,
Can you upload video of trading with supertrend indicator to understand it better? what other software have supertrend indicators ?
What is the cost of metatrader software and what is the monthly cost od NSE data?
Please send reply
Thanking You,
With Regards
Bushan

Suresh Gundappa said...

Send me your mail ID and I can send you more details.

Thanks
Suresh

Suresh Gundappa said...

Supertrend is probably one of the simple trend trading system yet very effective. There is no need for any great software. It is basically ATR based system you add 3 times ATR to mean price on either side of mean price and whenever price crosses the supertrend line then the trend changes. LIke any other good trend indicator this also has many whipsaws but it captures overall trend well. If you trade regularly on one stock or commodity, you can do well. My own "SURE" indicator also uses the same philosophy but I just have different view on trending and non trending market play.

Oscar said...

I wanna know about this stuff. I want to know where does the formula arrived? And if there is someone could help on understanding each formula then it would be nice.

rkkarnani said...

Hi Suresh, Somewhere above you had Posted a reply to send you email address to send further details on Use of Supertrend Indicator.
I too am interested. My email address is : rkkarnani@gmail.com

Please share more details per your convenience.
Regards.

deepak said...

hi suresh,i am also interested.My email address is : dipakbiranje@gmail.com

E Balaji said...

You can download MT4 in www.dummycharts.com with super trend indicator

vinay joshi said...

HI Suresh!! Ya ST works fine but the problem is u have to search many charts to see where has the crossover taken place ! So, i think the dier need is ,there also should be an alert irrespective of whether the chart is open or not ! Than it think the purpose of supertrend indicator will be much more fruitful for a day trader !! Please inform me ur comments !! My email id is : bapu4@yahoo.com !!
Thanx !1
GOD bless u !!

Suresh Gundappa said...

Vinay Joshi,

hunting for charts is a minor issue. I do not know what software you use. but I use Metastock and it is easy to write a explorer to hunt for stocks. ST works well on all time frames but for intraday I recommend slight alterations to the tune of increasing ATR.

Yashwant Gavade said...

Sir, can pl explain your "Sure" indicator or setup my email id id yash.gavade@yahoo.in

Gokul Raj said...

Sir, i am not aware of metastock and please send me details of sure indicator my email ID is hgokulraj@gmail.com

mukesh chauhan said...

get free access to live charts with sell and buy signal in nse ,commodity
contact mukeshworkonline@gmail.com for mor detail.

gopinathan thelakkat said...

Dear Suresh Gundappa,

I am using investar software and tried supertrend and the results are good.I have metastock also but not using now. Iam exited on the supertrend and uses multipier value 4 which doesnot give much whip saw.in Investar the data is limited and I am not able to check the results for long period (Back test).
I want to use the supertrend on metasock and back test it.can I do it.
I am also interested in SURESH
T Gopinathan gthelakkat@gmail.com