Supertrend Indicator
- Thread starter John9999
- Start date
Supertrend is pretty much the same thing as parabolic SAR, a trend indicator with a "built-in" stop.
It seems like it could be useful swing trading the ES, NQ, etc but I haven't done any live trades with yet tbh.
It seems like it could be useful swing trading the ES, NQ, etc but I haven't done any live trades with yet tbh.
I never cared for Parabolics as they never tested out well as stand alone indicator. And the more one tests, I can't find any indicator to be one size fits all with exception of reading charts. But it is a down and dirty way to express trend if a close exceeds the Parabolic, trend has changed. And in charting terms, price has "thrusted" beyond current market action with exception of reversal bar in which trend remains the same as before. Using Parabolic, what one is hoping for is next 2-5 bars a retracement happens and hop on board in direction of trend. In Elliott Wave, waiting for the wave 2 of congestion and then continuation of new trend.
But as @JSOP pointed out "Stops your profit way too early and result in tremendous losses during trending markets."
It is better to study ends of trend and make rules then test them to see if viable than using an indictor. Indicators can show divergences all day long in a defined trending day, but if you study "mean" of market swings and distances, you can understand better of what price should average. Also, study speed of price and what reactions happen at extremes so you can get out much better than parabolics.
Two basic kinds of winning traders: those who rely on (long-term avg, like 800+ trades) high winning pcts with a neutral (and below neutral) reward to risk ratio and those who rely on relatively even odds but with a 1.5x-2x reward to risk ratio.
The SuperTrend works (i.e. a winning system), but not for the first group I mentioned and not in the way the OP has presented its usage. [I've had it on my charts for 10 yrs now.]
You learn a lot by watching something in real-time without any pre-formed ideas on its canned usage or by relying upon others to do the necessary due diligence. [Well, on the second, we're not talking about special, giving people like NoDoji was now, are we]
The SuperTrend works (i.e. a winning system), but not for the first group I mentioned and not in the way the OP has presented its usage. [I've had it on my charts for 10 yrs now.]
You learn a lot by watching something in real-time without any pre-formed ideas on its canned usage or by relying upon others to do the necessary due diligence. [Well, on the second, we're not talking about special, giving people like NoDoji was now, are we]
