The Supertrend Line Indicator is probably one of the most popular custom indicators for MetaTrader 4.
The indicator is ideal for trend following strategies to spot a continuing trend.
What is the Supertrend Line Indicator for MT4?
Supertrend is a trend indicator that considers the moving average and the ATR value to understand the Trend of an instrument
Basically the indicator takes into account the volatility of the price and draws a line on the chart showing if the price is likely to be in an uptrend or downtrend.
You can set the Multiplier parameter to adjust the sensitivity of the indicator to the volatility of the price.
Ideally you want to buy when the price switches from downtrend to uptrend and sell in the opposite case.
The Supertrend Indicator is a very simple indicator to use however it is affected by ranging market and it could provide false signals.
The suggestion is to use the Supertrend indicator combined to some other indicator to provide better signals.
You can download the Supertrend indicator following the below banner.
How To Read The Supertrend Indicator
Reading the Supertrend indicator is very easy.
First of all the indicator shows only one single line on chart. This line IS the supertrend.
If the price and candles are above the line it means that the pair (or asset) is probably in an uptrend.
If the price and candles are below the line it means that the pair (or asset) is likely in a downtrend.
When the line switches from below to above or the opposite, it means that the trend finished and it is probably reversing.
Please always keep into consideration that no indicator is 100% right, all indicators have a degree of inaccuracy.
The parameters of the indicator allow to adjust the sensitivity of the indicator.
How To Use The Supertrend Indicator
You can use the Supertrend Indicator for Metatrader in the following situations:
- Entry Signal, when the trend switches you can consider an entry opportunity
- Exit Signal, if the trend changes you might want to consider exit a trade
- Trailing Stop, you could use the value of the indicator to set and trail your stop loss price
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