The supertrend indicator was developed by Olivier Seban. It not only acts as a, buy/sell signal generator but can also be used for areas of support and resistance as well as used for as a trailing stop. The supertrend is not a predictive indicator, it recognizes the trend and alerts you of the direction you should take.

A buy signal is generated when the Supertrend closes above the market price and changes to the color green.

A sell signal is generated when the Supertrend closes below the market price and changes to the color red.