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The SuperTrend is one of the most popular indicators in NanoTrader. Clients use it as a stand-alone trend indicator. They also use it as an automated order to close an open position when the trend changes from bullish to bearish or vice versa.
German trader Helmut Schmidt proposed to display the SuperTrend as a trading channel. The calculation of this indicator is nearly identical to the traditional SuperTrend. The SuperTrend Channel has a unique second line. This second line is plotted on the high/low of the most recent candles. It mirrors the SuperTrend base line. The result is a bullish (bearish) channel which changes when a new candle closes above (below) the channel line.
These are the advantages of the SuperTrend Channel:
Helmut Schmidt prefers to combine the SuperTrend channel with Range Bars. This example shows the SuperTrend Channel on a DAX Range Bars chart set to 8 points.
More from the same trader: the Range Bars Viewer and the Heikin Ashi trading tools.