The supertrend indicator is a Meta trader indicator used to detect the trend patterns in the indicator chart.It is a tool for technical analysis. It is a non-repaint indicator. This indicator is used to detect the new market trends and it is also used to detect new emerging signals in the Forex market that are shown on the indicator chart.It is the most profitable indicator that gives precise market calculations. Super trend indicator is also used to detect stop and resistance levels in the market trend.
EXPLANATION of SUPERTREND INDICATOR MT4:
The super trend indicator is designed by Olivier Seban; he says that it is a very simple and profitable indicator. It gives simple and exact market trends.It is the best indicator to detect the midpoints in the market trend.It gives more accurate trend patterns with the help of the MACD indicator. It gives more precise signals to buy and sells entries. It also tells that market is trending in bullish trends or bearish trends.It is also used to detect the price changes in the market trend that are very important and helpful in the Forex trading system. This indicator uses different indicators as collaborative tools. ATR and MACD indicators are used as collaborative tools. Super trend indicator uses different formulas for its precise calculation.
- Upper Level= (HIGH+Low)/2+Multiplier*Atr (Period);
- Lower Level= (HIGH+Low)/2-Multiplier*Atr (Period);
Super trend indicator has a specific pip like every indicator that helps the traders to detect up and downs in the market trend.It also uses different color schemes for different signals and arrows. It uses a blue color to indicate buy strategy in the market trend and it uses red color to indicate the sell strategies in the market trend. It also uses different colors for arrows of buy and sells strategies. It has some specific buy and sells rules that help the traders in ease of finding.
RULES FOR BUY STRATEGY: –
There are some specific rules for buy entry and exit that are given below: –
- When a blue color starts emerging in the indicator chart then it is the perfect time to enter for buy entry and when the blue line is moving up then it is the better time for buy strategy.
- When the blue color reaches the peak of the upper movements then it is the perfect time to push the buy button in the indicator chart and it is also a time to place a stop loss to prevent the trade from any loss in the trade.
- When the blue signal starts moving downward then it is the time to exit for the buy entry and it is the time to take profit in the Forex trading system.
RULES FOR SELL STRATEGY: –
There are some specific rules for sell entry and exit that are given below: –
- When a red color starts emerging in the indicator chart then it is the perfect time to enter for sell entry and when the red line is moving up then it is the better time for sale strategy.
- When the red color reaches the peak of the downward movements then it is the perfect time to push the sell button in the indicator chart and it is also a time to place a stop loss to prevent the trade from any loss in the trade.
- When the red signal starts moving upward then it is the time to exit for the sell entry and it is the time to take profit in the Forex trading system.
USES of Super trend indicator:
There are many uses of the Super Trend indicator. It is one of the best indicators used to detect market trends in the Forex Trading Market. It uses all the timeframes to trade and its trades with all the currency pairs in the trade.