Supertrend indicator is a custom forex indicator that generates accurate buy and sell signals in a trending market. As the name suggests, the “Supertrend” is a trend-following indicator just like moving averages and MACD (moving average convergence divergence). The indicator is displayed as blue and red line that is plotted on price bars and these colors indicate the current trend – upward or downward.
How to use Supertrend indicator?
The trading rules of the SuperTrend indicator are explained below.
Buy entry signals
- SuperTrend is blue
- The price is above the blue line
Sell entry signals
- SuperTrend is red
- The price is below the red line
Exit trade / take profit is possible in two ways:
- Aggressive – when changing the color of the indicator to the opposite
- Conservative – when the price crosses the indicator line
The indicator is easy to use and provides an accurate direction about an ongoing trend. The Supertrend indicator is created with two parameters, namely period and multiplier. The average true range (ATR) plays an important role in Supertrend as the indicator uses ATR to calculate its value. The ATR indicator signals the degree of price volatility.
Just like any other indicator, the Supertrend works best when used with other indicators such as MACD, Parabolic SAR, RSI, etc., but it can be a great standalone trading tool too. You can also add it to your best proven trading system or strategy.
How to install the Indicator on your Meta trader 4 trading platform?
- Download the indicator by clicking “LINK” button at the bottom of this post.
- Copy and paste the Indicator files into following folder of your Meta trader 4 (MT4) platform: MQL4 > Indicators.
- You can gain access to the folders this way: File > Open Data Folder > MQL4 > Indicators (paste files here).
- Restart your Meta trader 4 Client.
- Select Chart and Timeframe where you want to test the indicator
- Browse “Custom Indicators” in your Navigator that is located on the left in your Meta trader 4 platform.
- Right click on SuperTrend.mq4 and than click “Attach to the chart”.
- You can modify settings if you need and than click ok.
- The indicator is ready and running on the chart.