Supertrend

The direction of the trend can be seen and calculated on the schedule and without any particular knowledge of technical analysis, but the robot anyway will do it faster and more accurate than you. Two existing indicators were the basis for the Supertrend indicator: ATR (period-5) and CCI (period-50.) Each of them has its function:

• ATR – defines the levels;
• CCI – calculates the direction of the trend.

Together these indicators give accurate signals, and this tandem makes the Supertrend indicator indispensable in the arsenal of each trader, as it can be used alone or combined with other tools of technical analysis.

Trading with the Supertrend

Before trading, you should download the indicator for free on the MTDownloads website. Downloading and installing the tool will not take much time, and after them, you can directly start using this trading robot. For it, you don’t need to set complex parameters, as with other tools of technical analysis.

To trade with the help of this instrument can even a beginner in the world of trading because it's effortless to read it on the graph, as it is displayed just by the curved line of different colors, which varies depending on the situation in the market:

• Green - a bullish trend;
• Red - a bearish trend.

By the color of the line, the main tips for trading can be outlined:

• Green line - you need to buy an asset;
• Red line - you need to sell an asset.

These are very primitive tips, using which you can start trading with the Supertrend Tool and soon you will learn more competently to predict the market changes with its help. In addition to the type of trend, the indicator builds the levels of reflection on the chart, which is the representation of the ATR indicator.

In addition to the entry points, this tool of technical analysis will help you to put the Take Profit and the Stop Loss, which is put on the previous minimums and maximums of the price chart. Moreover, with the help of this robot, it is possible to build the levels of support and resistance on the long horizontal sections. All these opportunities contribute to observing the situation in the market from different sides.

The distinctive feature of the indicator is that it is used with short-term transactions, but with long-term orders, it doesn’t display good results. That’s why MTF Supertrend was developed, allowing to open the transactions with any time frames and even for several time periods simultaneously. It is an upgraded version of the standard Supertrend, but despite this, they are often used together, making it possible to filter all unprofitable signals. This strategy shows good results and is very easy to use:

• If the standard Supertrend is under the MTF Supertrend - a bearish trend is in the market;
• If the standard Supertrend crosses the MTF Supertrend from the bottom to the top - it is the reversal point in the direction of the bullish trend;
• If the standard Supertrend is above the MTF Supertrend - a bullish trend is in the market;
• If the standard Supertrend crosses the MTF Supertrend from the top to the bottom - it is the reversal point towards the bearish trend;
• If the standard Supertrend has changed its color but doesn’t cross the MTF Supertrend - the market is flat, or the price schedule is correcting now.

As you can see, it's effortless to trade with the help of these two robots, but you can first check their signals on the demo account and only after you are sure, that they are successful, you can start trading with real money, and the results will pleasantly surprise you.

The advantages and disadvantages of the Supertrend tool

Like any other trading assistant, the Supertrend has pros and cons, but the benefits are strong:

• The clear graph;
• Comfortable setting, without a huge number of parameters;
• Convenient use;
• A wide range of trading strategies;
• Excellent compatibility with other trading instruments;
• Accurate signals;
• The ability to select any financial instrument.

The delays of signals are seen here as well since it is typical for most tools. They are making your trading process a bit unstable, but you can get used to that.

Due to its ease of use and clarity, the Supertrend indicator is used by most traders in the Forex market. Download this assistant today on the MTDownloads website for free and see everything yourself.