Berlin, Europe
Market Wizard
Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker: Interactive Brokers
Trading: Keyboard
Posts: 9,888 since Mar 2010
Thanks Given: 4,242
Thanks Received: 27,102
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The Supertrend can be used in various ways. It changes direction when price has moved a considerable amount against the prevailing trend.
The SuperTrend can be used on its own, but then it should only be used during periods when you expect volatility to rise. Otherwise you maybe whipsawed. Therefore the most important filter to add would be a time filter.
Other than for timining entry signals, the Supertrend can be used
- as a trailing stop for exits only
- as a trendfilter in combination with other indicators that are used for timing entries
I actually have another more versatile version of the indicator, which I forgot to post, will do that this weekend.
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