SUPER TREND INDICATOR MT4
- The Super Trend is one of the best trend-following trading indicators developed for MT4 platforms. A great choice for real-time trend alerts and accurate signals
The Super Trend is a non-repaint MT4 trend indicator. It applies only a single trendline curve for showing the reversal points of the market trend.
In financial trading, a trend is your friend only when you can anticipate its direction correctly. However, determining the right trend is not enough for making profitable entries. We need to assess the strength behind the price and forecast the possible range of upcoming market movements as well.
- This upgraded version of super trend tells you about the current trend condition and helps you to analyze the strength/weakness of price moves.
How to use Super Trend for trading forex and stocks in MT4
- The Super Trend value is calculated based on its Nbr period and multipliers. We’ll determine the market trends depending on the price position compared to the indicator level.
Generally, the price breaks the super trend line maintaining its position above the indicator level means the price is trending upwards. The indicator turns green during a bullish trend market. In such a condition, the indicator level will work as trendline support. Whenever the price breaks the support line, the indicator color turns red to signal a bearish trend. During a bearish move, the price treats the super trend level as a trendline resistance.
If you closely look at the above chart, you’ll notice the super trend line doesn’t react with the close of each price candle. Sometimes, the indicator level remains unchanged and plots a straight horizontal line. It happens when the price fails to break the high/low of its previous candle and closes as inside bars. So, whenever the indicator level stops ticking, we address the market as sidelined.
When you spot a sidelined market, wait for the strong price breakout in either way. For instance, open a sell order when the price makes a bearish breakout following the downtrend market. Otherwise, go long if the price plots a bullish breakout at the super trend resistance level.
- Furthermore, you can use the supertrend line as both the initial and trailing stop-level of your trade entries. Exit an order when the price breaks the trendline in an opposite direction to your trade entry.
Conclusion
- The Super Trend indicator works in a similar fashion to moving averages. It involves only a few simple trading rules which are very easy to master. So, besides, experienced traders, newbies can also be benefited from its classic trend signals. Moreover, you can easily merge it with any trend-following trading strategy.
- This indicator has been specially parameterized for spotting intraday trend reversal conditions. However, it also delivers precise buy/sell signals when applied for day trading, especially for forex and stock instruments.
