SuperTrend Indicator: A Simplified Approach to Trend Trading
Description: The SuperTrend Indicator is built upon two key indicators: ATR (Average True Range) and CCI (Commodity Channel Index). The CCI (with a standard parameter of 50) determines the trend direction, while the ATR is used to set the indicator levels. When the CCI is above 0, the SuperTrend either rises or moves horizontally, depending on the ATR. Conversely, if the CCI is negative, the SuperTrend falls, also based on the ATR.Opening trades in the direction of the trend maximizes profit potential and is particularly suitable for beginners who may not have experience with complex trading techniques such as swing trading or countertrend positions.
Formula
UpperLevel=(High[i]+Low[i])/2+Multiplier*Atr(Period)
LowerLevel=(High[i]+Low[i])/2-Multiplier*Atr(Period)
TrendCCI_Period = 50
Characteristics of SuperTrend Indicator
Platform: Metatrader4
Currency pairs: All pairs
Trading Time: Any ( recommended European and American sessions )
Time-frame: recommended H1 and higher
Rules for opening a long position:
SuperTrend is blue
The price is above the blue line: Wait for the first descending correction and open buy position
Rules for opening a short position:
SuperTrend is red
The price is below the red line: Wait for the first ascending correction and open sell position
Exit Strategy:
Aggressive: Exit when indicator color changes to the opposite
Conservative: Exit when the price crosses the indicator line
Stop Loss is set above/below the previous local minimum/maximum.
For increased signal accuracy, additional filters can be applied. As such a filter. One such filter is the MTF SuperTrend with a higher timeframe.
For example:
for M5, set MTF SuperTrend TimeFrame Value with a period of 30 (M30)
for M15, set MTF SuperTrend TimeFrame Value with a period of 60 (H1)
for H1, set MTF SuperTrend TimeFrame Value with a period of 240 (H4)
You may buy this awesome SuperTrend Indicator just only for 12.75$.
For full access, including codes and parameters, click on SuperTrend Indicator to purchase it.
RISK DISCLAIMER:
The application shown on this page does not consider your personal circumstances and trading objectives. Therefore, it should not be seen as a personal recommendation or investment advice. Past performance is not indicative of future results. There is no guarantee that the systems, trading techniques, methods, expert advisors (EAs), scripts and/or indicators will lead to profits or prevent losses.