Homework task 5 by professor @stream4u super trend
Hi there, as part of the completed class I will be submitting my task 5 by professor @stream4u thanks to @steemitblog for such initiative to keep steemitians engaged.
What Is A Super Trends Indicator?
With the basics of trading experience, a trader can find a super trend indicator quite helpful although there can be some level of inaccuracy while using the indicator.
So in some simple terms, a Super trend indicator is a trading signal/indicator that can help a day trader make an entry position either to buy or sell, with it traders can have a backing position of when to enter a trade.
The super trend is used to identify the point of entry in a trade.
Show how to set SuperTrend on Chart and what are its settings need
I will be using the poloniex exchange platform trading view to show how a super trend can be set up using BTC/USD pair
On successful login locate your preferred trading pair and click on the indicator.
Search for super trend, automatically the super trend indicator will appear on your trading chart view.
In other to make the necessary adjustment or setting click on the setting button to make adjustments I'm using a mobile web view to show my illustration.
How SuperTrend Shows Buy-Sell Indications?
Since with the help of a super trend indicator, a trader can easily spot buy and zone and sell zone from the chart it can be seen the line with red at the highest high uptrend can be used to execute sell order while the line showing green at the low downtrend can be used to execute the buy order.
Although a trader will have to wait patiently for the price to go either above or below the support or resistance line so have to have a clear entry point.
When We can place a Buy Trade with the help of a SuperTrend Indicator?
Ideally, the super trend line shows green with a dip downtrend gives a trader signal to open a buy order trader.
But it is expected for traders to be patient and diligently wait for a breakout which means a clear signal for the price to move a bit upward before placing a buy order.
When we can place exit/square off, sell order with the help of SuperTrend Indicator?
In other to place an exit order we have to wait for a clear uptrend If a new phase in price when for instance there have been much much downtrend and there is a new movement showing a clear upward movement a trader can easily place an exit order to close the sell order.
How false indications look in SuperTrend Indicator?
Figuring out the false price indicator will know when there is a mixed movement or false mix up and down movement.
For instance, there can be an immediate green line which indicates buy and within a few second a red line can flow which show there is no much stability in the current price.
According to your view what Stoploss you will suggest?
From our class lecture for stop loss to be set it should be placed above the support zone.
Since I'm new to super trend features I will suggest placing stop-loss above the support zone.
Conclusion
Much thanks to @stream4u for introducing such an amazing trading tool I'm getting to know what super trend is all about I've got an additional tool that will help boost my trading experience.
The super trend is a very good and recommended tool for trading activities.
Hi @mccoy02
Thank you for joining Steemit Crypto Academy and participated in the Homework Task 5.
Your Homework task 5 verification has been done by @Stream4u.
The support zone is a level where we buy assets, then sell them above to book profit.
After buying at support if the market trend moves more down instead of up, then to avoid further losses we have to place stop-loss at below the last 2 support level. This means stop-loss will locate below buy point means below support.
Yes, a stop-loss can also set above support but only that time when we are in good enough profit then to book profit we can place sell order somewhere above the support level.
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
Thanks for the feedback well noted thanks