SuperTrend MT4 Indicator - Free MT4 Indicator

SuperTrend MT4 Indicator – Free MT4 Indicator

The SuperTrend MT4 Indicator is based on a trend following method which is used to identify if prices are trending upwards or downwards. Typically, when price is trading above the super trend, it signifies an uptrend and when prices are trading below the Super trend, it signals prices in a downtrend. For traders who have difficulty identifying trends, the SuperTrend MT4 Indicator offers an easy and visual approach to spotting trends and trading in the direction of the trend.

An important aspect of the SuperTrend MT4 Indicator is that it signifies dynamic support and resistance levels. It is calculated as an average price which is then added to or subtracted from the average true range. The ATR is multiplied by a coefficient factor to adjust the offset of the average or mid price.

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SuperTrend MT4 Indicator – Chart Setup

Once the indicator is applied to the chart, traders will see a line, printed either in Red or Green. When the Supertrend MT4 Indicator is Green, price is always trading above this indicator, signaling an uptrend. Likewise, when price is in a downtrend, the Supertrend MT4 Indicator turns red.

SuperTrend MT4 Indicator - Trading SetupSuperTrend MT4 Indicator – Chart Setup

SuperTrend MT4 Indicator – Settings

The SuperTrend MT4 Indicator comes with only two configurations.

  • Nbr Periods
  • Multiplier (also known as coefficient)

The default setting for the SuperTrend MT4 Indicator is 10 period Nbr and 3.0 Multiplier.

SuperTrend MT4 Indicator - Settings


SuperTrend MT4 Indicator – Trading Rules

The SuperTrend MT4 Indicator is mainly used to identify the price trends. Therefore, when price is in an uptrend, buying the dips is the most ideal strategy. Likewise, when prices are in a downtrend and the SuperTrend MT4 Indicator is Red, selling the rallies is the most ideal trend based position to take up.

We also noted that the SuperTrend MT4 Indicator acts as a dynamic support/resistance level. A simple trend following strategy based on the SuperTrend MT4 Indicator can be developed. The rules are simple as well.

  • Wait for price to break out of the SuperTrend MT4 Indicator in the opposite direction
  • Wait for price to move back to the SuperTrend MT4 Indicator (to form support or resistance)
  • Applying candlestick patterns (Bullish/Bearish Engulfing or Harami or Doji patterns), trade in the direction of the trend.

The chart below shows how the SuperTrend MT4 Indicator is used as a dynamic support and resistance indicator as well as a trend indicator.

Starting from the left side of the chart we notice prices were in a downtrend. Then price spikes higher and signals an uptrend as the SuperTrend MT4 Indicator turns Green. We now wait for prices to fall back to the SuperTrend MT4 Indicator to find support (marked by the up Green arrow). A long position is taken, targeting the previous resistance level (marked by the down Red arrow). Prices then tend to move sideways before breaking the resistance. A quick dip back to this broken resistance establishes support (marked by the up Green arrow). Because prices are still in an uptrend, long positions can be taken and trailed along or the long position can be closed after moving some specified number of pips.

Eventually, we notice prices breaking out from the SuperTrend MT4 Indicator to the downside, signaling downtrend. On the far right of the screen, notice how the previous support now turns to resistance. Short positions can be taken here and traded along.

SuperTrend MT4 Indicator - trading rulesSuperTrend MT4 Indicator – Trading Rules

Entry Rule
When price moves above the red line, it’s time to go long.
When price moves below the green line, it’s time to go short.

Exit Rule
Exit long position when the price moves below the green line.
Exit short position when price moves above the red line.

Stop Loss
For long position, use the session low as stop loss.
For short position, use the session high as stop loss.
Be aware that if the session candle is very long, then your risk is higher. You can either skip the trade or enter a smaller lot size. It’s all about risk management first, profit second.

Time Frames
Technically speaking, you can use this indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.

The SuperTrend MT4 Indicator is quite a versatile trend indicator which also doubles up as a dynamic support/resistance indicator. Combined with good price action techniques, the SuperTrend MT4 indicator definitely adds value to traders, especially in terms of keeping the trade on the right side of the trend.

 


SuperTrend MT4 Indicator Download

We have provided this useful indicator to you at no cost. We humbly request for your help to spread the word by sharing on one of the social platforms below. To unlock the download link, you just need to share this page to help us achieve our goal of helping more traders out there.

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Leave us a comment below to let us know your thoughts on this indicator. If you like this indicator, you might like see other indicators that we have carefully selected that will help you in your trading journey.

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