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Ouch. Sorry to hear that. I can understand the concern about self-promotion but at the same time the info provided either directly on FIO or outside the context of the site could be helpful in pointing individuals in the right trading direction.
Can you help answer these questions from other members on NexusFi?
Thanks for your info. I checked this link but it was written in "German" language, please see below the easy "ENGLISH" trsnalation. Thanks "Google-Translate".
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Supertrend is a moving stop and reversal line that is determined on the basis of volatility. The indicator can be used as a pure trend filter as well as a stop loss or a complete trading system.
** Basics
Supertrend is similar to the Parabolic Stop And Reverse System that was introduced in the 1970s. It is based on the mean value of the bars and measures the volatility as a range between high and low, taking into account any price gaps. Based on a starting value, the indicator continues in the chosen direction until the market moves strongly in the opposite direction when volatility rises. Then the indicator jumps to the starting value of the opposite direction. The indicator is programmed so that it can only change in the direction of the trend. Decreasing volatility or movements against the trend direction only cause it to continue to be drawn horizontally.
** Calculation and parameters
The calculation cannot be mapped in a formula, since in the broadest sense it is only a case of distinctions. The mean value of the current bar, from which a multiple of the volatility is subtracted, is used as the starting value for the upward trend. For the downward trend, the volatility is added. A check is now made on each bar to determine whether the newly calculated indicator value is more favorable, i.e. whether it is moving in the direction of the trend or not. If it is cheaper, it is drawn; if it is not cheaper, the old value is simply used. The result is that Super Trend never goes against its trend direction and the market breaks through at some point, which then results in a trend change.
interpretation
There are many different ways to apply Supertrend. It is common for forex traders to trade the crossovers directly. The system is then always on the market and is only supplemented by a stop and other rules to secure profits.
For analytical purposes, Supertrend can simply provide information about the prevailing price trend. If the market is above the indicator, there is an upward trend, otherwise a downward trend.
Supertrend can serve as an exit for another trading system. This means that open positions are closed when the trend of the indicator changes. However, it should be noted here that the position openings are adjusted to the indicator, or that there is special treatment for situations where the indicator and position have not followed the same trend since the opening.
** Parameter description
Period - calculation length of the average volatility
Factor - multiplier that determines the distance between the indicator and the market
FINAL UPPERBAND = IF( (Current BASICUPPERBAND < Previous FINAL UPPERBAND) and (Previous Close > Previous FINAL UPPERBAND)) THEN (Current BASIC UPPERBAND) ELSE Previous FINALUPPERBAND)
FINAL LOWERBAND = IF( (Current BASIC LOWERBAND > Previous FINAL LOWERBAND) and (Previous Close < Previous FINAL LOWERBAND)) THEN (Current BASIC LOWERBAND) ELSE Previous FINAL LOWERBAND)
SUPERTREND = IF(Current Close <= Current FINAL UPPERBAND ) THEN Current FINAL UPPERBAND ELSE Current FINAL LOWERBAND
Hi and thanks for the detailed description. I use the TS Supertrend on NT8 and find it extremely helpful in my trading analysis. Because it's so helpful to me, I was wondering if you or anybody else has an automated version for this. I attempted to utilize the built-in automation creator function in NT8, but it is not sufficient to automate this completely in the way that I would like. Thanks.
I have created my own ninjatradets8 version Strategy that buy and sell using this indicator using a built in flag called "Signal State". you can also write your own, its is very easy. when signal state is "1" its a BUY signal and when it is "-1" its a SELL signal.
Here is my version adapting Wyckoff's method and also the Tom Williams VSA interpretations of VSA.
After years of testing various SOS and SOW markers, I ended up needing only 8 markers to identify every bar on a price chart using my amended jargon.
Signs of Strength (SOS):
SOS 1 Light demand. (LiD). (Involves light to very light volume and prices closing higher).
SOS 2 Major effort to rise closing positively. (Mj eff +ve). (Involves a high close within the range of the bar and high volume).
SOS 3 Buying pressure. (bp). (Involves high volume and prices closing higher).
SOS 4 Heavy buying pressure. (Hbp). (Involves a high close and ultra-high volume).
Signs of Weakness (SOW)
SOW1 No demand. (Nd). (Involves light to very light volume and prices closing lower)).
SOW2 Selling pressure. (sp). (Involves high volume and prices closing lower).
SOW3 Major effort to rise closing negatively. Mj eff -ve). (Involves a low close on the range of the bar and high vol-ume).
SOW 4 Heavy selling pressure. (Hsp). (Involves a low close and ultra-high volume).
Here is my bar by bar indicator with different options the first highlights the bar-by-bar SOS and SOW interpretations; the second indicator focuses on the sequential SOS and SOW markers and creates a fractal interpretation of the markets or the changes to buyer and seller behaviors. I found out later that the bar-by-bar indicator is 100% compatible with Gann's Rule of Three Method although more informative as the former interprets volume and Gann's method ignored volume.
