SuperTrend Indicator MT4 helps you easily identify the current trend or a trend reversal, allowing you to find suitable entry points when trading. This indicator is especially useful for traders who prefer breakout strategies.
Introduction to the SuperTrend Indicator
“Trend is your friend.”
Trading with the trend is one of the most popular (and simplest) ways to seek profits in the market. The SuperTrend Indicator helps you accurately determine the current trend and instantly alerts you when the market has reversed.
After installing it on MT4, the SuperTrend Indicator will draw a trend line with two different colors:
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Green line: Uptrend
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Red line: Downtrend
This is a very useful indicator for real-time trend alerts. It does not repaint (non-repainting indicator).
How It Works
Every time the price moves on the chart, the SuperTrend will draw corresponding horizontal support/resistance lines. When these lines are broken, the indicator changes their color, signaling that the trend has reversed.
How to Use
This indicator helps you spot potential trend reversals early and enter trades sooner.
First, observe the current trend, then wait for the price to break through the SuperTrend line in the opposite direction. This signals a possible trend change.
Similar to the breakout trading method, you can also wait for the price to retest the broken level before entering a trade to secure a more favorable entry price.
Example:
When the current trend line is red, it indicates the market is in a downtrend. Then, if the price rises and breaks above this red SuperTrend line → the trend line changes to green, showing that the price has turned upward and the trend has reversed.
What you should do now is wait for the price to pull back slightly, then look for a bullish reversal candlestick pattern → and enter a BUY trade.
In summary, you can trade with this indicator in two ways:
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Reversal trading (e.g., as shown by the first arrow in the chart above), or
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Trend-following trading (as shown by the second and third arrows in the chart).
Besides identifying trade entry opportunities, you can also use this indicator to set your stop-loss:
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Just below the SuperTrend line (for BUY trades), or
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Just above the SuperTrend line (for SELL trades).
Discussion
The SuperTrend Indicator has an advantage over regular Moving Averages because it gives you clearer, more actionable price levels. It’s definitely worth trying, and you may even find it fits well with your main trading strategies.
Download SuperTrend Indicator MT4
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