Indicators are used to identify trend of the stocks using graphs. It indicates the particular stock trend is moving upwards or downwards over the particular period of time. I use zerodha to identify the trends during market hours.
There are different types of indicators available in the market. But we are discussing about special 5 to 7 indicators completely in upcoming weeks.
I am not tell about fundamentals of supertrend or who invented or its technical terms. Instead of this, I want to tell how to use this indicator in our day to day trading.
Steps to set SuperTrend indicator in your graph
- Select super trend in indicator section.(I am using zerodha. It’s in studies section)
- Set Period -10 and Multiplier- 2 with signal uptrend as Green and downtrend as Red.
- Set time frame to 5 minutes.
- All done. Your graph looks some weird line as mentioned below.
Now you are ready to trade, when the super trend starts to green arrow mark then we started to BUY the stock with the strict stop loss of 0.5 to 0.8 percentage. When the super trend starts red arrow mark means the trend is getting reversed so we are ready to get out from the position and vice versa for selling the stock.