Supertrend Indicator

MT4 Free Download

Introduction to the Supertrend Indicator

The 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 set up the Supertrend indicator in MT4?

Installation Guide

Download the Supertrend.rar archive at the bottom of this post, unpack it, then copy and paste the Supertrend.ex4 or Supertrend.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.

You can gain access to this folder by clicking the top menu options, which goes as follows:

File > Open Data Folder > MQL4 > Indicators (paste here).

Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.

In the archives you will find following files included:

SuperTrend.mq4
SuperTrend.ex4
MTF_SuperTrend.ex4
MTF_SuperTrend.mq4
Super Trend template.tpl
ST + MTF ST_H4 template.tpl

Bottom Line

The Supertrend indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it.