The super-trend indicator relies on two fundamental dynamic values- period and multiplier. But before we get into that, it is important to understand the concept of ATR or Average True Range. ATR is yet another indicator that gives you market volatility value by decompressing the range of prices of a security for a particular time.
- A super-trend indicator is plotted on either above or below the closing price to signal a buy or sell. The indicator changes colour, based on whether or not you should be buying.
- If the super-trend indicator moves below the closing price, the indicator turns green, and it signals an entry point or points to buy