Supertrend Composite Indicator provides the information about the overall net performance of the Supertrend strategy with Nifty 50 stocks. This composite indicator adds the value “1” to the indicator if the any of the stocks are in buy mode and subracts “1” from the indicator if the stock turns to sell mode. And the computed values are plotted in Histogram format.
If the Histogram turns green from red then it means bulls are dominating the market
If the Historgram turns Red from green then it means bears are dominating the marekt.
only Change of Colors indicates who is dominating the market. Its not a everyday signal.
So overall this indicator computes and indicates the breath of the Nifty 50 stocks. It shows the net buy or sell signals generated by supertrend on the whole i.e who is more dominant a bull or a bear? For Example The Breath Value of “0” indicates 25 stocks are in Buy mode and 25 Stocks are in sell mode. The Current value of the supertend indicator as per the above chart is 34. 34+8=42 stocks are in buy mode and 8 stocks are in sell mode currently resulting in the breadth value of 34.
This indicator is currently added to EODSignals (Nifty EOD Charts) and will be autoupdated everyday after 6.00PM.