• The Supertrend Indicator is a popular technical analysis tool designed to assist traders in identifying market trends.
  • The indicator combines the average true range (ATR) with a multiplier to calculate its value. This value is then added to or subtracted from the asset’s closing price to plot the supertrend line.
  • The Supertrend Indicator can help identify trends, manage risk, and confirm market tendencies.
  • The indicator is limited by its lagging nature, is not very flexible, and can send up false signals.
  • The Supertrend Indicator has become a staple for traders in stocks, currencies, and commodities for its ability to identify and follow market trends.