SuperTrend is a VertexFX simplified implementation of the famous super trend indicator.
Supertrend is a very simple indicator. The Buy and Sell signal changes as soon as the indicator flips over the closing price.
Supertrend is a trending indicator, and like all trending indicators, it works well in trending markets.
However, it does give lesser false signals than a lot of other indicators. The SuperTrend indicator is calculated utilizing the ATR to offset the indicator from the price.
One of the advantages of the SuperTrend is it just moves in the direction of the trend. When the red line flips and turns green a buy signal is generated.
When the green line flips and turns red, a sell signal is generated. The signals itself can be used to open positions.
With other strategies, supertrend can be used as a trend filter. The supertrend line can also act as a trailing stop loss.
Super trend calculation:
Up = (high + low)/ 2 + multiplier x ATR
Down = (high + low) / 2 – multiplier x ATR
Where multiplier is the parameter ATR_Multiplier in the VTL script and ATR is the Average True Range.
ATR is calculated for the period determined by the parameter ATR_Period in the VTL script.
To use SuperTrend Indicator download it from HERE, then place it at VertexFX VTL directory:
C:\ProgramData\VertexFX Client Terminals\"Company name"\VTL10\Local VTL Scripts
Then right-click on the tree and select refresh or restart your client station and you will find under VTL local scripts in your client terminal.
You can check this video that talks about SuperTrend Indicator: