Introduction

• The strategy we will be implementing today is super trend
• The Supertrend indicator generates buy and sell signals based on trend changes
• The buy/sell signal are triggered when the indicator crosses the close price
• Supertrend is a trend indicator and has a high winning percentage like all trend indicators

Supertrend Positive Cross

• The Supertrend Positive cross is a bullish crossover
• A Buy call is triggered in such a setup when the prices close above the supertrend indicator
• Let’s look at an example in the chart below (Zydus Life on a daily time frame)

Supertrend Negative Cross

• The Supertrend Negative cross is a bearish crossover
• A sell call is triggered in such a setup when the prices close below the supertrend
• Let’s look at an example in the chart below (Canara Bank on a daily time frame)

A sell signal is generated when the supertrend closes above the price as shown in the figure. Now that you know what a Super Trend Negative crossover is, let’s look at a few opportunities in the LIVE market

Awesome, but what’s my takeaway?

• Zyduslife, Ramco Cement, Tata Steel , SAILl & Piramal Enterprise have given a buy call on a daily time frame (implementing supertrend Positive cross)
• BEL, Canara Bank, Tata Communication, ATGL & Bajaj Auto have given a sell call on a daily time frame (implementing Supertrend Negative Cross)