Powerful SUPERTREND Trading Strategy | How To Use Supertrend For Day Trading Stocks And Forex

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In this video, I am going to share the best way of using the supertrend indicator to generate consistent profits.

But before we start, be sure to subscribe to our channel so that you don’t miss on any of our new videos.

With that being said, lets get into today's video.

So first, let us understand what is the supertrend indicator. As the name suggests, supertrend is a trend following indicator just like moving average. Supertrend is plotted on the price chart, and it helps in identifying the trend.

When the price is above the supertrend, it will be green in color. This indicates the asset is in an uptrend.

On the other hand, when the price is below the supertrend, it will be red in color. And hence, we can say that the asset is in a downtrend.

The supertrend is based on the ATR indicator. Hence, there are basically two parameters that affect the super trend. The first is ATR period, and the second is ATR multiplier.

By default the ATR period is set to 10 and the ATR multiplier is set to 3. In my opinion, these settings are good enough for trading, but, you can play around with different settings to suit your style.

Now let us look at how does the Supertrend work.

Here we see that the price is in an uptrend. Now this green line is the supertrend line. This means that as long as the price stays above the green line, the uptrend will be intact. When the price breaks this green line, we see a change in the supertrend. We see that a red line starts to form above the price. This is an indication of a trend change. Hence, this indicates that a downtrend has begun.

In theory, when the supertrend becomes green, we want to buy. And, when it turns red, we wan to sell.

The problem here is that this strategy means that we stay in the market all the time. We are either in an uptrend, or a downtrend. The supertrend gives us buying and selling signals even in a sideways market. And such signals can lead us to big losses.

In fact, it is said that the market stays in a sideways range for 70% of the time. Hence, if we use a trend indicator like the super trend in a sideways market, It will become very difficult to stay profitable.

So how do we filter the signals that are generated by the supertrend indicator. This is where our strategy comes into the picture.

Видео Powerful SUPERTREND Trading Strategy | How To Use Supertrend For Day Trading Stocks And Forex канала Trade Prime