Approximating Daily SuperTrend Values on Intraday Charts
Summary
The document presents an indicator intended to display a daily SuperTrend line on a lower-timeframe chart for intraday use. It derives a daily true-range measure from daily highs, lows, and prior closes, then forms upper and lower bands around the daily midpoint using a multiplier. The trend state switches when the daily close crosses a prior band; the active band is carried forward or reset around a trend change.
The author explicitly describes the result as an approximation. The calculation averages daily true ranges simply instead of using the Wilder averaging normally associated with ATR, and the platform at the time lacked native multi-timeframe support. The article warns that these choices can make the plotted values differ from a true daily SuperTrend. It offers no performance tests or entry and exit rules, so the indicator is best understood as a charting method rather than a demonstrated trading strategy.
Key ideas
- The indicator projects a daily SuperTrend calculation onto an intraday chart.
- It builds bands from daily true range and the midpoint of the daily high and low.
- Trend direction changes when the daily close crosses a prior band.
- A simple average replaces Wilder averaging, so the plotted line can differ from standard daily SuperTrend values.
- The document presents no performance evidence or trading rules for acting on the indicator.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.