The supertrend indicator is a technical analysis tool used to identify the trend direction and strength of a particular security or asset. It is based on the concept of average true range (ATR) and uses a combination of price averages and ATR to generate buy and sell signals.
The supertrend indicator is typically plotted as a line on a chart, with the line turning green to indicate an uptrend and red to indicate a downtrend. The thickness of the line is often used to indicate the strength of the trend, with a thicker line indicating a stronger trend and a thinner line indicating a weaker trend.
Traders and investors use the supertrend indicator as a trend-following tool to identify potential entry and exit points in the market. It is particularly useful for identifying trends in securities with a high level of volatility, and can be used in conjunction with other technical analysis tools and indicators to confirm trade signals.
Supertrend indicator had been a recent popular indicator among day traders and now download supertrend indicator for metastock. The indicator has been tested working under MetaStock 12 pro version. Sample chart of MCX Lead Futures with supertrend indicator shown above
Factor:=Input("Factor",1.00,10.00,3.00); Pd:=Input("ATR Periods",1,100,10); Up:=MP()+(Factor*ATR(Pd)); Dn:=MP()-(Factor*ATR(Pd)); Td:=If(Cross(C,LLV(Up,13)),1,If(Cross(HHV(Dn,13),C ),-1,PREV)); Dnx:=If(Dn=HighestSince(1,Cross(Td,0),Dn),Dn,PREV) ; Upx:=If(Up=LowestSince(1,Cross(0,Td),Up),Up,PREV); ST:=If(Td=1,Dnx,If(Td=-1,Upx,PREV)); ST
How to Apply this Supertrend Indicator in Metastock
1. Open Metastock
2. Goto Tools->Indicator Builder -> New
3. Paste the code in the Indicator Editor and Save under the Name Supertrend
4.Now Goto Insert->Indicator
5.From the Indicator List choose Supertrend and apply on the Inner Window #1 as shown below
6. Bingo Done. Now start using it
If you are not using Metastock then here you have other options
Download Supertend Indicator for Amibroker with Targetlines and Dashboard
Download Supertrend Indicator for Metatrader with Sound and Popup Alerts