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HomeForex MT5 IndicatorsSupertrend Indicator

Supertrend Indicator

Introduction to the Supertrend Indicator

The Supertrend Indicator is a high-demand forex trading tool. It helps to solve major issues, like what is the current trend, when does it start and end. Signals provided by that Supertrend gauge give answers to these questions. Both beginners and advanced forex traders find it powerful and highly accurate.

The Supertrend Indicator fits all kinds of timeframes and currency pairs. It is displayed directly on the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.

How does it work? How to apply in trading?

Trading Rules Explanation

The trading signals of Supertrend Indicator are displayed in the form of a red and green cloud. The green cloud indicates that the trend is considered bullish. Conversely, the red cloud suggests a bearish trend takes place. Trades are triggered at the switch of the cloud’s color.

Buy Signal

Follow these steps for a long trade:

  • The cloud of the Supertrend Indicator switches from red to green
  • Price swings higher from recent low swing
  • Buy trade is triggered after the first candle meeting above conditions
  • Set stop loss a few pips below the last swing low of the market
  • Take profit or exit trade whenever Supertrend Indicator provides opposite signal or use your own method of trade exit

Supertrend Indicator Example of Buy Trade

Sell Signal

Follow these steps for a short trade:

  • The cloud of the Supertrend Indicator switches from green to red
  • Price swings lower from recent high swing
  • Sell trade is triggered after the first candle meeting above conditions
  • Set stop loss a few pips above the last swing high of the market
  • Take profit or exit trade whenever Supertrend Indicator provides opposite signal or use your own method of trade exit

Supertrend Indicator Example of Sell Trade

As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.

How to set up the Supertrend indicator in MT5?

Installation Guide

Download the Supertrend.rar archive at the bottom of this post, unpack it, then copy and paste the Supertrend.ex5 or Supertrend.mq5 indicator files into the MQL5 folder of the Metatrader 5 trading platform.

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

File > Open Data Folder > MQL5 > Indicators (paste here).

Now go to the left side of your MT5 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.

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. Don’t forget that we still have more great free forex indicators to try.

Download Free Forex MT5 Supertrend Indicator

To download the Supertrend Indicator for Metatrader 5 (MT5) for free just click the button below:

Supertrend Indicator Free Download

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