GRID Bot Indicator: SuperTrend
As the name suggests, ‘Supertrend’ is a trend-following indicator plotted on prices. It is easy to use and gives an accurate reading about an ongoing trend.
Join Pionex Grid Bots chat on Telegram: https://t.me/PionexGridThe article was translated from a Taiwanese trader, Justin, who has the experience in the stock market for 18 years with bot trading. Here’s his Medium post if you’re interested: https://medium.com/justins-trading-room/pionex-super-trend-5b5026afe8d2
It’s easy to use the grid bot according to multiple indicators. SuperTrend is one of the indicators which generates buy and sell signals.
The buy and sell signals are generated when the indicator starts plotting either on top of the closing price or below the closing price. A buy signal is generated when the ‘Supertrend’ closes below the price, and a sell signal is generated when it closes above the closing price.
As for grid bot, we’d like to use it when the market fluctuates or going upward. According to the SuperTrend indicator in the above image, we’ll use the grid bot when the indicator turns RED, and close the grid bot when it turns BLUE. (You could set your preferred color when you’re setting the indicator)
How to add SuperTrend indicator to your chart
It’s easy for users to add indicators on their chart when using Pionex exchange. I prefer using two SuperTrend indicators with different settings.
After adding the indicator to the chart, click the GEAR ICON, and you’d be able to change the parameters.
According to my experience, I’ll add two sets of SuperTrend on the chart. One for short term trend (Length: 3, Factor: 1) and another for long term trend (Length: 10, Factor:3)
Here’s one of the simple way to read this chart: when the short term indicators give us a buy signal, then buy some portion of the assets. Buy another portion of the assets when the long term indicator also gives us the buy signal.
If you’d like to use the SuperTrend indicator for your daily trading, here are some tips for you:
- Don’t buy in too early if the price hasn’t closed.
- If you buy in because of the SuperTrend indicator, sell those assets immediately if the indicator turns to a sell signal.
- Your buy and sell signals should be generated in the same timeframe.
- I prefer to use it with the daily chart, so I only have to check the chart once a day.
I’ll use several indicators when using grid bots, such as MACD and CCI. Also it’s perfect for switching from grid bot to infinity grid bot according to the change with these indicators. I’ll cover them up in my following blog post
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