Do you know who Olivier Seban is?. He’s the inventor of the SuperTrend Indicator.
He is a French writer author of bestsellers on financial success, translated into over 20 languages.
“Tout le monde mérite d ‘être riche” is his most successful book
The extraordinary aspect of this man’s story is that at 32 he was already a millionaire and at 35 he had already accumulated enough capital to retire!!
Olivier Seban Biography:
Olivier Seban began his economic activity in the early 1980s, during the technological revolution due to the first personal computers.
Even though he was very good at what he did, he always favored his freedom, family, and friends.
For this reason, he has refused many well-paid job offers.
But to be truly free, he had to earn enough money to afford it.
It has, therefore, launched several entrepreneurial initiatives.
When he was 23, he started his first company.
Success was immediate, and at the age of 23, he earned more than 300,000 francs a year.
Unfortunately, he sold this profitable business after almost a year without earning anything because the buyer scammed him through fake checks.
But he doesn’t give up, and at 26 he tries again.
This time it starts a computer hardware deployment task. Again, after a promising start, it failed.
At the age of 32, Olivier Seban finally had the opportunity to create a company that earned him from 0 to 100 million francs in 4 years.
The trick was to realize that he was not good at being a manager and then hired a manager to run the business.
Three years later, he sold the company and retired at 35.
After gaining his freedom, he devoted himself to his own personal intellectual and financial development.
He has dealt with both financial markets and real estate sales. With the latter, he was able to earn staggering figures by buying and reselling.
In 2000 he left France, with his wife and children, to discover the world but to continue to work freely through his online projects.
In his trader activity, he has developed several indicators and trading systems.
The most famous is the SuperTrend Indicator. Here you can find our tutorial.
About Olivier Seban SuperTrend
One of the most used Trend Follower indicators is the Olivier Seban SuperTrend.
The Super Trend, developed by Olivier Seban, aims to identify the primary trend followed by prices.
It can get market buy and sell signals.
We use it as a trailing stop for managing existing positions.
We use three elements for its calculation:
The average price of the session (Average Price).
(H + L) / 2.
We then measure the volatility recorded by the market over a certain period.
To calculate it, we use the Average True Range indicator, which calculates the average range of the last X sessions.
The Average True Range also considers any gap-ups and gap-downs.
Usually, we calculate the Average True Range (ATR) of the last 10 periods.
After this, we multiply the volatility by a fixed coefficient (which varies from a minimum of 2 to a maximum of 3).
Two reference bands are obtained in this even if it usually displays only one.
Upper Band = average price + (multiplier × volatility)
Lower Band = average price – (multiplier × volatility)
The value of the Upper Band (Band Up) is obtained by adding a multiple of the volatility to the average price.
The value of the Lower Band (Bande Down) is obtained by subtracting a multiple of the volatility from the average price.
SuperTrend Trading Signals
If the closing price is greater than the value of the Upper Band, the Supertrend indicates a trend bullish.
Here, the value of the Lower Band acts as a dynamic trailing stop (for any long positions).
The trailing stop is dynamic in that its value is affected by the volatility expressed by the market.
As long as the prices remain above the Upper Band, you will only have to look for long opportunities.
If the closing price is lower than the value of the Lower Band, the Supertrend signals a bearish trend.
The value of the Upper Band, which is drawn on the graph, acts as a dynamic trailing stop (for any short positions).
The trailing stop is dynamic as it accompanies the drop in prices and its value is affected by the volatility of the market expressed.
As long as prices remain below the Lower Band, we need to stay lower or look for opportunities to open new short positions.
We can use the Supertrend as a Stop & Reverse indicator.
When prices fall below the Lower Band, any long positions must be closed and a new short position on the market opened.
When prices rise above, the Upper Bands must close any short positions and open a new long position.
Olivier Seban Book “Tout le monde mérite d’être riche”.
You don’t need to have money to get rich already. Olivier Seban shows that it is relatively easy to buy real estate or invest in financial markets from reduced capital.
The book offers several techniques for becoming rich.
It is essential, first of all, to change one’s view of money and then to make the right decisions.
Whatever is the best way to become rich, the most important lesson of this book is that everyone can embark on the enrichment path proposed by Olivier Seban.
It can also be used to create trading signals, but like any trend follower indicator, it lags behind price movements.