Supertrend Indicator
Platform: MT4 Type: Trend Last update: November 21, 2024The Supertrend Indicator for MT4 is one of the top choices when it comes to trend-following (and counter-trend as well!) trading. It became quite popular among forex traders due to the simplicity and reliability.
Essentially, it analyzes market direction and volatility and based on calculations it plotts single line which is moving above or below candlesticks. It’s designed to react to changes and fluctuactions as quickly as possible, with minimal lag.
Example chart:
How to use the supertrend indicator for mt4 in trading?
Basically, signals provided by the supertrend are based on colors and alignment of the main line in relation of price candles.
When it turns green and switches location to be below bars, it’s an indication of bullish setup. What’s more, one can think about it terms of trailing support level as it acts so. Just take a look at this chart below.
There is clean upward movement and you can see how the price is respecting it as support. It rejected this area and then continued rising.
For the bearish scenario, the very same (analogous) rules apply – just the opposite readings: red line and placement above bars.
One of its advantages is not only that it provides accurate entries but also that it allows trailing transactions in order to maximize profits, however that’s only in certain conditions.
Performance
When it comes to performance, it delivers the best results during clear and strong trends. The least favorable conditions are during choppy or sideways markets. Even then, the indicator does its best and provides solid signals (very limited amout of fake ones).
Settings
Behind the scenes, it operates on average true range and multiplier. Both inputs are customizable in the settings tab. If you want to have more sensetive readings and reactions – increase the multiplier. If you want to lower them – simply decrease it.
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