Here Is Why I Suggest You Should Use The SUPER TREND! For FX:EURUSD By MohannadYakout – WorldNewsEra

webnexttech | Here Is Why I Suggest You Should Use The SUPER TREND! For FX:EURUSD By MohannadYakout - WorldNewsEra

Let’s be honest, I am someone who normally likes to follow the trends.A lot of the trend following indicators I’ve encountered along the way in my professional and career growth haven’t made sense to me.
Moving averages, Average Directional Index , Moving Average Convergence-Divergence, Parabolic SAR etc.
I always had a lot concerns with the indicators being able to swiftly follow the price movement, as well as identify a clear reversal of the underlying trend.
However, I came through to find this SUPER ‘super trend’ indicator some while ago, and by testing this and adding it to my intraday trading strategy, I finally see that I could rely on one single indicator to help me identify the trend quickly and more efficiently (never 100% of course it is still not a holy grail!) but the results were good enough for me to write down this post to you guys.
What is the Super trend indicator?
‘Super trend,’ as the name implies, is a trend-following indicator, similar to moving averages and MACD .
It is plotted on prices, and the position of the prices reflects the current trend.
When we build the Super trend indicator, the default settings are 10 for the ATR and 3 for the multiplier.
The average true range (ATR) is important in ‘Super trend’ since it is used to determine the indicator’s value and it indicates the degree of price volatility , which is one reason why this indicator beats Moving averages, which disregards price volatility .
Super trend Indicator Formula The super trend indicator computation is illustrated below– Up = (high + low / 2 + multiplier x ATR) Down = (high + low) / 2 – multiplier x ATR Average True Range = / 14 The number 14 represents a period in this context.
As a result, the ATR is computed by multiplying the previous ATR by 13.
Add the most recent TR and divide it by the time.
As a result, ATR is an essential component of the supertrend technical analysis indicator.
How to Use Super trend Indicator to Identify Buy and Sell Signals?
Super Trend, as a trending indicator, performs well in trending markets (both uptrends and downtrends).
When the indicator flips over the closing price, it is easy to identify a buy-sell indication.
When the Super Trend closes below the price and the colour turns to green, a buy signal is issued.
A sell signal is generated when the Super Trend closes above the price and the colour of the Super Trend changes to red.
There is no such thing as a 100 percent accurate technical indicator, and Super Trend is no exception.
It also produces erroneous signals in sideways markets, however it produces fewer false signals than other indicators.
As a result, you may use Super Trend in conjunction with other indicators to provide more accurate trade signals.
Follow my daily analysis posts on my account to check out how to combine it with other momentum indicators as well as use it for multi-time frame analysis!

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