📈 SuperTrend Trading Strategy – Trend Following
The SuperTrend indicator is a popular trend-following technical analysis tool used by traders. It is based on the Average True Range (ATR) and the closing price , making it a dynamic support and resistance level that moves with price. In this blog, we'll explore: What is the SuperTrend indicator? How to calculate it How to use it for trading signals Python code to backtest and visualize it 🔍 What is SuperTrend? The SuperTrend indicator helps determine the current market trend . It uses: ATR : to calculate market volatility Multiplier : to adjust the sensitivity Formula : Upper Band = (High + Low) / 2 + Multiplier * ATR Lower Band = (High + Low) / 2 - Multiplier * ATR When price closes above the SuperTrend → Buy Signal When price closes below the SuperTrend → Sell Signal 🛠️ Python Implementation ✅ Requirements pip install pandas numpy matplotlib yfinance 📜 Python Code import pandas as pd import numpy as np import yfinanc...