Hello awesome people, how is everyone doing, hope everyone is doing great and having a splendid day. Super excited to be part of this amazing crypto lecture week and to partake on the courses. This is really amazing as it is a fanstastic way to add value to the community and learn as well, and for me. I have learnt so much so far and I have to say, this is really great for improving our knowledge on topics on blockchain and crypto. This week’s topic covers All About SuperTrend Indicator and the different aspects of it…
What Is A SuperTrend Indicator?
When it comes to trading effectively, there are factors that come into play as well as useful tools and strategies. SuperTrend Indicator is simply a trend-following indicator or overlay on your chart. What this simply means that the supertrend indicator would show you the trend direction and also as far as there is an active uptrend, the supertrend indicator would not give you sell signals. From the chart you can clearly see the supertrend that shows the current trend of the trading asset.
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[Supertrend indicator on Chart]
Show how to set SuperTrend on Chart and what are its settings need to configure
- To set SuperTrend on chart, first go to https://www.tradingview.com and signup
- On your chart, locate the indicators tab at the top and click on it
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- Search for supertrend on the search box
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- Select the supertrend of your choice, for this post, I chose the first supertrend indicator by KivancOzbilgic.
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- Select it and you will see the supertrend indicator overlay on your chart.
For its settings
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How SuperTrend Shows Buy-Sell Indications
Since we already know what a supertrend indicator is and what it does, it simply means that the supertrend indicator changes its colour depending on the current trend. Red indicates sell, while green indicates buy. From the chart, you can see the supertrend indicators signaling when to sell or buy. The supertrend indicator uses the current trend to show you when to sell or buy as you can see from the chart.
When We can place a Buy Trade with the help of SuperTrend Indicator
This is the major benefit of using a supertrend indicator when it comes to trading assets. Since the supertrend indicator shows the current direction and overlays it on the chart, you have to look out for the supertrend line and the changes in the colour line. When the supertrend line changes to green and the price of the cryptoasset you want to buy is above the line, it means you can place a buy trade.
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When we can place exit/square off, sell order with the help of SuperTrend Indicator
This is also another amazing benefit of using a supertrend indicator. The supertrend indicator shows the current direction and overlays it on the chart, you have to look out for the supertrend line when it changes to red… The red colour indicates a sell. When the price of crypto asset is below the supertrend line, the you can place a sell order, just like the indication on the chart below.
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How false indications look in SuperTrend Indicator
While indicators are of great benefit in trading, you have to understand that they are not always accurate in their signals and can sometime be false. That is what it is very important to be careful and vigilant when using the supertrend indicator.
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According to your view what Stoploss you will suggest
I would have to say that stoploss can be very helpful when used effectively. Like the name says, it helps limit losses when trades don’t go in your favour. According to me, I would place the stoploss a little above the support line of supertrend.
Conclusion
I will have to say, having a sound knowledge of some trading tools like supertrend can be very beneficial when trading any financial asset, in our case, when trading crypto assets. Supertrend is a very useful tool that when used correctly and effectively can be very beneficial in trading… however, it is important to know that it can also show false signals, which means that you have to be careful and alert when dealing with supertrend indicators.