Supertrend Plus Indicator

The SuperTrend Plus is a trend indicator that displays an uprend when the current close price exceeds the main trend line in an uptrend and a downtrend when the current close price falls below the main trend line in a downtrend. In an uptrend, the main trend line equals the median price plus a multiple of the average true range, while in a downtrend, the main trend line equals the median price minus the multiple of the average true range. In an uptrend, the exponential moving average equals the value of the downtrend indicator dots; in a downtrend, it equals the value of the uptrend indicator dots.

What is the Supertrend Plus Indicator?

The SuperTrend Plus is a good forex and stock trend signal indicator for MetaTrader 4. It can identify bullish and bearish market trends. On MTF charts, it also shows dynamic support and resistance levels. This indicator assists traders in identifying exact trend-following buy-sell signals and trade entry positions. Furthermore, its dynamic SR level indicates critical price breakout opportunities and potential take-profit zones. The SuperTrend Plus indicator is ideal for beginning traders. Simultaneously, it assists skilled traders by providing vital information on trends and price levels.

Setting up the Supertrend Plus Indicator
Setting up the Supertrend Plus Indicator

Supertrend Plus Strategy

SuperTrend Plus displays probable support-resistance levels using a dynamic price channel. It alters the hue of S/R lines to indicate bullish or bearish market tendencies. During a bullish trend, it draws a green line below the price. A red line above the price, on the other hand, indicates a bearish trend.

You could look for price action signs near the support line during a bullish market to place a buy order. You may consider holding the long position until the price fails to break through the higher resistance. When the chart shows a bearish reversal signal near the red resistance line, you could go short. After activating sell orders, you may place a stop loss above the resistance. You could consider a short exit whenever the price begins to reject the support level.

Buy Signal

The following could be your checklist for a buy trade:

  • When the asset being traded is in an uptrend.
  • When price is above the Supertrend green line.

Once these events occur:

  • You could open a buy position after you confirm your entry with bullish candlestick patterns.
  • You could set your stop loss just below the nearest swing low.
  • You could set your take profit at the nearest resistance zone, or you could exit trade when price hits the Supertrend red line.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Supertrend Plus Indicator Buy Setup
Supertrend Plus Indicator Buy Setup

Sell Signal

The following could be your checklist for a sell trade:

  • When the asset being traded is in a downtrend.
  • When price is below the Supertrend red line.

Once these events occur:

  • You could open a sell position after you confirm your entry with bearish candlestick patterns.
  • You could set your stop loss just above the nearest swing high.
  • You could set your take profit at the nearest support zone, or you could exit trade when price hits the Supertrend green line.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Supertrend Plus Indicator Sell Setup
Supertrend Plus Indicator Sell Setup

Supertrend Plus Pros & Cons

Pros

  • The Supertrend Plus Indicator can show the traders dynamic support and resistance levels on the chart.
  • This indicator can be advantageous in trending markets for staying in the market without exiting trades too quickly.

Cons

  • The color change by the indicator may sometimes inaccurately interpret a trend correction as a trend reversal.
  • This indicator may not be very suitable for narrow-ranging markets especially on smaller timeframes.

Conclusion

The SuperTrend Plus is a flexible MT4 indicator designed specifically for trend traders. It identifies potential price downturn levels, buy-sell zones, and trade-exit zones. It also allows you to trade in the FX, stock, and cryptocurrency markets at the same time. However, bear in mind that this indicator does not guarantee profits, hence it is better to combine it with price action and other indicators for additional confirmation.

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