Before we stars with super trend crossover let me tell you
something regarding what is Super trend? Super trend is an indicator and has
many advantages over other indicators, super trend is also known as ATR
(Average True Range). Super trend is a moving average of true range generally
14 days. Super trend was originally developed for true range but can also be
apply to stocks or nifty.
ATR is not a directional indicator like RSI, it is a
volatility indicator. It can be calculated using following formulas
Current Super trend = [(Prior Super trend x 13)
+ Current TR] / 14
Using super trend indicator we can find buying and selling
opportunities in stock market. According super trend strategy if the value of
ATR goes up by crossing the candle one can say it is pure selling opportunity.
If the value of ATR goes down by crossing the candle one can say it is pure
buying opportunity.
You can see selling opportunity from image when super trend
is going high after crossing the candle. Similarly you can see buying
opportunity when super trend goes down after crossing the candle.
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