intraday trading

What is super trend in technical analysis?

Technical Analysis: SuperTrend Indicator

If you want to become a professional  intraday trader and earn money in nse stock market  you have  to learn and implement technical analysis for spotting trades by using different indicators like super trend.  Indicators are independent trading techniques introduced to the world by successful traders. Indicators are built on preset logic using which traders can supplement their technical study (candlesticks, volumes, S&R) to arrive at a trading decision. Indicators help in buying, selling, confirming trends, and sometimes also predicting trends. A ‘Super trend’ indicator is one, which can give you precise buy or sell signal when market is in either a uptrend or down trend.

Also Read: What is the meaning of square off in intraday?

Before we start providing information about the Supertrend indicator, let me give you idea about the term  “Technical Analysis”. There are lot of novice traders who do not have knowledge  of  term technical analysis and this will help them to learn the concept better..

Super Trend Indicator

Technical Analysis

The term technical analysis means a  research based on movement of  stock  market prices in the past and  the technical indicators. A Technical analyst always believes that short term price movements in the future will always depends on movement of the stock in the past. If a trader wishes to do day trading, he should be well versed with the Technical Analysis or he should find a company like to do through technical research and then provide share tips in nse market for day trading.

Also Read: Which is the best indicator for intraday trading?

Super Trend

Super trend is the best indicator to find buying stock & selling stock opportunity in Bombay stock exchange ( BSE) & National Stock Exchange ( NSE).  All the traders who do technical research before trading  should always use this indicator to identifty the best stock to either buy or short sell and also the perfect time to execute the orders.

A trader can first calculate the main Super Trend using the daily charts and then use  the one hour or 30min or a 15min chart to locate  entry timings for trade.

The Super indicator is very easy to use and also gives an accurate reading about an ongoing trend of the stock. It is constructed with two parameters, namely period and multiplier. The default values used while constructing a super indicator are 10 for average true range or trading period and three for its multiple.

The supertrend indicator measures trend direction but not strength. It gives buy or sell signals when price crosses the indicator. In a sense, it is similar to a moving average and trailing stop hybrid. Since the indicator flips sides from above to below price action and back it adds an element of the parabolics stop-and-reverse for actually making the trade.

Also Read: How does a trading tips company give accurate Intraday Tips?

A chartist using ‘Supertrend’ needs in two important things, first the ‘period (ATR number of days)’ and second one  ‘multiplier (value by which ATR is multiplied)’ 

Like any other indicator, ‘Supertrend’ works best when used with other indicators such as MACD, Parabolic SAR, RSI, This indicator performs badly in volatile markets, traders need to ensure they have identified the underlying trend and use this indicator in tandem with other indicators. 

Super Trend Formula

Upper = ((high + low / 2) + Multiplier * ATR …Only if price < upper

Lower = ((high + low / 2) – Multiplier * ATR …Only if price > lower

ATR = simple moving average of TR

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Share Market Tips Technical Analysis

Best Technical Analysis Tools for Share Market

Stock trading is certainly a matter of pure calculation. Everything depends on numbers and your experience also counts here. But, when it comes to taking decisions in this field, numbers are the most valuable aspect that one should take into consideration. This is the reason why technical analysis tools for stock market trading are so much in demand.

These tools help in understanding and predicting the price movements of any stock. There are countless technical analysis tools available in the web world, and all of them claim to be the best in the business. Quite obviously, not all of them are telling the truth.

Check Some Technical Analysis Tools for Stock Trading

So, the question is- how to find out the best options in this regard? Well, you need not have to toil in order to figure them out, because below are the details. We have mentioned some of the best technical analysis tools that you can consider for stock trading.

Simple Moving Average

Simple Moving Average

In short SMA, this tool provides you the daily mean value of any stock in the last N number of days. You can choose to directly view the average value during the last 20, 50, and 200 days. So, it becomes easier for the traders know how the stocks of any particular company are performing. This tool is basically used for providing support as well as resistance areas. In addition, the crosses are considered as the signals for buying and selling the stocks. Thus, Simple Moving Average can be really useful.

Moving Average Convergence/Divergence

Moving Average Convergence Divergence

Also known as MACD, this analysis tool is quite similar to that of SMA. However, the basis of calculation used by this tool is somewhat different. The indicators provided by MACD are quite versatile in nature, and you can consider them as nearly signal as well.

Relative Strength Index

Relative Strength Index

If you are good with calculations, this tool can be really useful for you. RSI is certainly a bit tricky in the area of mathematics, but the results generated by this tool are quite impressive. This tool makes a comparison between profits and losses, and on the basis of it, the tool comes up with charts that can be used for making decisions. When it comes to figuring out the intensity of a move, then RSI seems like a much better tool in the market. The most common duration considered by this tool is 14-days.

On Balance Volume

On Balance Volume

This is an indicator which is utilized for measuring the upward and downward flow of any stock’s volume, in regard to its value or price. This tool is quite simple in nature, and it maintains a cumulative total of stock’s volume by adding/subtracting the volume of each period. Quite certainly, it depends on the price movement.

Average Directional Index

Average Directional Index

Also known as ADX, this analysis tool is another highly effective trend indicator that can be used for measuring the momentum and strength of an ongoing trend. It mainly focuses on the momentum of any stock, rather than its direction. You can certainly rely on it.