Introducing CHATS: The Chande Absolute Trend Strength Indicator by Tushar Chande

The SuperTrend Indicator is a technical analysis tool that is used to identify market trends and potential entry and exit points in trading, but if you plan to use it as a stand-alone buy or sell signal, you will likely be disappointed with the results!
In this episode of our Technical Analysis series, TrendSpider's Jason Krutzky walks through how the indicator works, the different ways it can be used across the platform, and how to utilize it in tandem with other indicators to create profitable long and short-biased trading strategies that beat buy and hold on some of the biggest names in the market today!
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Chapters:
00:27 Intro
00:27-1:28 - SuperTrend basics?
1:29-3:27 - Implementing SuperTrend Into Your Analysis
3:28-4:10 - A Trading Strategy That Employs only SuperTrend
4:11-6:10 - A Bullish SuperTrend and PSAR Strategy on QQQ
6:11-8:40 - A Bearish SuperTrend and Stochastic RSI Strategy on TSLA
8:41-9:00 - Outro
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Free Strategies for TrendSpider Users:
QQQ SuperTrend/PSAR (Bullish) Strategy:
charts.trendspider.com/shared/...
TSLA SuperTrend/Stochastic RSI (Bearish) Strategy:
charts.trendspider.com/shared/...
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[@DP-ii8hl]

great! Just one question regarding a correct comparison of a trading strategy and a benchmark. I think that one should reinvest profits and losses (this is what the index does) and compare it. So the only way to achieve this would be setting the position sizing to 100% of equity per trade.. am I correct?

[@TrendSpider]

There is not a way to define 'amount of equity per trade' in the strategy tester at this time.

[@cef011]

Chats Apple back tester strategy does not work. I added the tester and I keep getting missing or incomplete entry or exit criteria. I was trying to verify what he was saying.

[@TrendSpider]

Perhaps you can tell us what you're inputting as entry and exit criteria? CHATS definitely does work in the strat tester, but maybe there's something you're missing. Feel free to reach out to our support team via the 'contact us' button in the bottom right corner of your platform view. They can definitely assist you!

[@drwatson1234]

What does breakout friendly mean exactly?

[@secrettrader-og4eb]

My guess is it's prob used for breakouts, and prob more accurate at showing breakouts, that's prob what this was exactly built for I guess, but again that's def just a guess, GL!

[@TheAutisticlove]

I think what it means is that you would trade breakouts when the CHATS is strongly bullish/bearish. If we use the example of AAPL as they did in the video, the April 4th 2023 high breakout was successful, the May 19th, 2023 breakout was successful, the June 5th high breakout was successful, provided you used an adequate stop loss. Compare that to where CHATS was < 70, the long break out near 150 took a really long time to materialize and might have even stopped you out. As Tuschar said, it's never going to work 100% but you could stack the odds in your favour by trying to trade stocks with trends in the >60/>70 levels.

[@drwatson1234]

@@TheAutisticlove many thanks for the great explanation!

[@TrendSpider]

The idea is that when CHATS has a reading > +70 or < -70, these are times when the trend is most powerful, and therefore, the best times to be trading in the direction of the trend!

[@burgertaster9394]

Why don't you make videos with currencies, forex trader want to see more videos on forex not stocks

[@TrendSpider]

Thank you for the suggestion! We'll consider ways to highlight them in future videos.

[@bimil8724]

Litterly no different than a SMA.

[@TrendSpider]

Wildly different than an SMA, actually!