Trend in Technical Analysis 2018
If you are a professional intraday trader, implementation of technical analysis is must. As the New Year is all set, here is a brief overview of the trends in technical analysis 2018 that will make an impact. The post also throws light on the super trend indicator. As per researches by the experts, the skilled technical analysis is going to gain leverage in the market.
This post explains the technical analysis tool known as super trend. The technical analysis tools or indicators help the traders to sell, buy, read trends, and predict trends. Here is one of the best indicators that will help in technical analysis.
Super Trend Indicator for Technical Analysis
Super Trend indicator gives precise indications for selling and buying. It helps to predict trends in both the situations when the market is up or down. It is an advantageous trend indicator for buying and selling in BSE and NSE. Every trader looks for best time to trade while using analysis tools.
With Super trend analysis tool, one can calculate the trend by using the daily basis charges. At thesecond stage, traders can use it for locating entry timings by using the 15 minute or 30 minute or one-hour charts.
Key Features of Super Trend Technical Analysis
This super indicator for trend analysis in trading is quite simple to use. Yet it gives accurate trend analysis of the stocks. The tool uses period and multiplier as grounds. The default values applied at the time creating this indicator is 10 for average true range or ATR period and 3 for its multiple. ATR or period stands as number of days.
The super trend indicator tells us trend directions. It provides signals for buy and sellwhenever the price crosses. The indicator is quite similar to the trailing stop hybrid and moving average. It adds the feature of parabolic stop-reverse to trade.
How to Use Super Trend
A trader using Super Trend will have to keep two factors in mind.
- Period – no. of days (Average true range)
- Multiplier (it is the value by which the ATR is multiplied)
Likewise most of the indicators, supertrend works best when it is used in combination with other indicators. You can use it with SAR, RSI, Parabolic, and MACD. Supertrend is not a perfect tool to use in volatile markets. Hence it should use with another indicator that is good for the volatile market.
Super Trend Formula
Here is how the super trend formula is and how it works for the trend reading.
- Upper = ((high + low/2) + Multiplier X ATR
This formula should be applied only when price is less than the upper
- Lower = ((high + low/2) – Multiplier X ATR
This formula should be applied only when the price is greater than the lower
- ATR = simple moving average of true range of TR
Keep visiting our blog for more updates on the best technical analysis trends indicators for Indian stock market.
Technical analysis takes price and volume as a basis for trend reading of the whole market. However, the fundamental analysis considers the research and analysis of the stocks. The trends in technical analysis 2018 will indeed see indicators dominating in the market trend analysis. Charts and patterns will continue helping traders not to predict trends absolutely but to minimize the risk ratio. If you are a complete novice to the technical analysis, Nifty Trading Academy helps you with its training courses.