Supertrend + RSI Trading Strategy

➡️ Supertrend indicator, developed by Oliever Seban, is a useful technical tool for capturing the direction of the stock’s momentum. It uses the Average True Range (ATR) in combination with a multiplicator. This lagging indicator allows us to set market entries based on both momentum and volatility.

➡️ The True Range indicator is the greatest of the following: current high less the current low; the absolute value of the current high less the previous close; and the absolute value of the current low less the previous close. The ATR is then a moving average, generally using 14 days, of the true ranges.

➡️ Supertrend is more useful in trending markets and not when the markets move sideways.

➡️ For more efficient signals, a super-trend is used in combination with other indicators. Today, we are combining it with RSI, which is a measure of a stock’s momentum.

➡️ If the super-trend indicator moves below the closing price, the indicator turns green, and it gives a buy signal which is further confirmed when RSI moves above 60 levels. Conversely, If a super-trend closes above the closing price, then the indicator shows a sell signal in red which is further confirmed by RSI at below 40 levels.

🚀 Learn to use various other indicators with Supertrend to identify stocks with strong bullish or bearish trends in Mr. Khagesh Agarwal’s Supertrend Indicator Strategy.

None of the above stock ideas are intended as recommendations. Please consult a registered advisor before buying/selling.

✍🏼 If you have any questions or just want to say hi, feel free to write to us at [email protected]