Thanks Sir for the reply.
The ST is calculated based on a coefficient that is applied to the average volatility of the period considered.
The Super Trend indicator is calculated using the Average True Range (ATR).
The Average True Range is an indicator that calculates the average range of the last X seats and measures volatility.
Once volatility is identified, the Super Trend is calculated by applying to the latter a volatility multiplier and a coefficient relative to the observation period over which volatility is calculated.
The SuperTrend Indicator Formula:
Upper=(high+low)2+ (Multiplier∗ATR)
Lower=(high+low)2− (Multiplier∗ATR)
Olivier Seban is the inventor of the SuperTrend Indicator.
Below is one of the older post.
I really dont know if its a proprietary tool.
Regards,
Deepak
