Super Trend Super Trend is a non-replotted MT4 trend indicator. It uses a trend line curve and is designed to show the reversal points of the MT4 market.
In the world of financial trading, trends are your best friend when you can accurately predict their direction. However, just knowing the right trend is not enough to make a profitable trade. We have to assess the strength of the price and also predict the possible range of upcoming market moves, etc.
This updated version of SuperTrends informs you about the latest status of the trend and helps you to understand the strength of the price movement.
How do I use SuperTrends to trade Forex and stocks on MT4?
Its Super Trend value is calculated by analyzing its duration and multiplier. We will calculate the market trend by analyzing the position of the price when compared to the level of the indicator.
In general, when the price that breaks the super trend line also stays above the indicator level, it indicates an upward price trend. The green color of the indicator indicates a bullish market. If this is the case, the indicator acts as support for the trend line. When the price breaks below its support line, then the color of the indicator turns red, signaling a bearish movement. In a bearish trend, when the price perceives the super trend level as a resistance to the trend line.
If you take a closer look at the chart above, you will see how the trend line does not react to the end of each price candle. Sometimes the indicator level stays the same and is plotted as a one-way horizontal line. This happens when the price does not exceed the low/high of its previous candle and closes within the bar. When the indicator stops beating, the market is considered to be sidelined.
If you see a market slump, be patient and wait for the price to break sharply in any direction. For example, when the price shows an upward breakout after a downtrend, you can open a sell order. In other cases, consider going long when the price shows an upward breakout near a supertrend resistance level.
In addition, you can use the supertrend line as a trailing stop and as the first stop on a trade entry. You can exit the order when the price crosses the trend line in the opposite direction of your trade entry.
Super Trend is a super trend indicator that works in the same way as a moving average. It requires only some basic trading rules and is easy to learn. Also, traders can benefit from the classic trend signals, except for novices. Moreover, it can be combined with any trend following strategy.
The indicator is specifically designed to detect trend reversals in intra-day trading. However, when used for day trading, it can also provide accurate buy and sell signals, especially for stock and forex instruments.