It is known that supertrend do not retraces or pulls back. That is to say, once red line is established above it will never move higher and always trail. Also green line will never go down once plotted.
But I found these curious instances while using very tight Supertrend inputs of period =1 and multiplier =3. Anyboby plz explain!
The supertrend provides buying and selling signals. It also indicates the market’s uptrend and downtrend.
1.when the supertrend signals to buy or turns green, investors should wait for the next candlestick to form to see if it will go up or down.
2.When the price falls below the supertrend, it signals to buy, we must wait for the next candle to form after crossing the supertrend.
This technical indicator works well. On TopStockResearch, you can create your own Supertrend strategy, making it easier to identify trends.
supertrend is a lagging indicator. try mixing it with a leading indicator.