Berlin, Europe
Market Wizard
Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker: Interactive Brokers
Trading: Keyboard
Posts: 9,888 since Mar 2010
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The SuperTrend is a SAR (stop-and-reverse) trailing stop. When it is long, a bar close below the stop will make it revert and it will go short. When it is short, a bar close above the trailing stop will make it revert and it will go long.
The SuperTrend is not designed to draw any trend lines that cut into price. If you wish to draw such trend lines, you would use a moving average. There is a class of adaptive moving averages which draw horizontal trend lines in sideways markets. Please have a look at
- the Kaufman Adaptive Moving Average (KAMA)
- the Variable Index Dynamic Average (VIDYA or VMA)
- ADXVMA
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