Double SuperTrend Forex Trading Strategy

The Double SuperTrend forex trading strategy is designed to offer one of the simplest visual aids to initiating powerful buy/sell signals.

The strategy works best when the market is trending. Learn the buy and sell rules below.

Chart Setup

MetaTrader4 Indicators: SuperTrend.ex4 (default setting), SuperTrend-signals.ex4 (color modified: 0 = MediumBlue, 1 = Yellow)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, Day

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy in the market if the following indicator or chart pattern gets displayed:

  1. If the lime colored line of the SuperTrend.ex4 custom mt4 indicator cross the line of the SuperTrend-signals.ex4 indicator bottom up with price trading somewhat above the lines, price is said to be pressured higher i.e. a signal to buy the pair of focus. The SuperTrend-signals.ex4 indicator defines the short term trend, while the SuperTrend.ex4 indicator underscores the long term trend.

The SuperTrend-signals.ex4 indicator can offer us signal to short term buy (medium blue) and sell (yellow) signals.

Stop Loss for Buy Entry: Place stop loss below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions take precedence:

  1. If during an existing buy signal the red colored line of the SuperTrend.ex4 custom mt4 indicator crosses the line of SuperTrend-signals.ex4 indicator top downward as shown on Fig. 1.0, it is a signal to exit or take profit without delay.

It is most probable that during the intersection, the line of the SuperTrend-signals.ex4 is painted yellow.

Sell Entry Rules

Enter a sell order if the following indicator or chart pattern gets displayed:

  1. If the red painted line of the SuperTrend.ex4 custom mt4 indicator cross the line of the SuperTrend-signals.ex4 indicator top downward with price trading somewhat below the lines, the sentiment in the market is said to be bearish i.e. a signal to sell the pair of interest. The SuperTrend-signals.ex4 indicator defines the short term trend, while the SuperTrend.ex4 indicator underscores the long term trend.

The SuperTrend-signals.ex4 indicator does depict intermittent price actions during the wider trend (bearish), owing to the more dominant yellow painted line of the SuperTrend-signals.ex4 indicator (refer to Fig. 1.1).

Stop Loss for Sell Entry: Place stop loss above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following rules or conditions holds true in the market:

  1. If during a prevailing bears market signal the lime colored line of the SuperTrend.ex4 custom mt4 indicator crosses the line of SuperTrend-signals.ex4 indicator bottom up as seen on Fig. 1.1, traders are advised to exit or take profit at once.

It is most likely that during the intersection, the line of the SuperTrend-signals.ex4 is painted medium blue.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The SuperTrend.ex4 is a non-repainting custom mt4 indicator that leverages on the values of ATR when computing the indicator’s values.

SuperTrend-signals.ex4 custom mt4 indicator is a trend following indicator that resembles the moving average.

It defines a bullish trend when its line is painted medium blue (buy signal) or bearish when the line is painted yellow.

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