Many trading strategies are based on a price trend. These can be trend following strategies when you trade with the trend, or they can be trend-reversal strategies when you trade against the trend. Supertrend is a popular indicator that allows you to spot the overall trend of a Forex pair or any other asset.
MT4 Supertrend Line indicator is a great tool to add to your MetaTrader platform.
Supertrend indicator for MetaTrader 4 easily shows the trend as a line following the price.
Basically, the indicator takes into account the volatility of the price and draws a line on the chart showing if the price is likely to be in an uptrend or downtrend.
There are many ways to verify a trend. Some traders use moving averages, some people use trend lines, others use a combination of those tools or some other indicators.
Supertrend is just another simple indicator that can help spotting the trend depending on the position of the price and a combination of MA and ATR indicators.
Supertrend Indicator can be useful in the following situations:
Supertrend can be an entry signal, exit signal, and stop-loss follower.
The Supertrend Line Indicator is probably one of the most popular custom indicators for MetaTrader 4. The indicator is ideal for trend following strategies to spot a continuing trend.
Also, you can use it to buy when the price switches from downtrend to uptrend and sell in the opposite case.
Supertrend is a very simple indicator to use. However, it is badly affected by a ranging market and can provide false signals. The suggestion is to use Supertrend in combination with some other indicators to provide better signals.
Reading Supertrend indicator is very easy.
First of all, the indicator shows only one single line on the chart. This line is the supertrend.
If the candles are above the line, it means that the currency pair is probably in an uptrend.
If the candles are below the line, it means that the currency pair is probably in a downtrend.
When the line switches from below to above or the vice versa, it means that the trend has ended and is probably reversing.
Please keep in consideration that no indicator is 100% right — all indicators have a degree of inaccuracy.
Supertrend indicator supports a number of input parameters. They are useful to configure the indicator's sensitivity and reaction.
You can download a free copy of MT4 Supertrend Line indicator along with its source code using the following link:
To install the MT4 Supertrend Line indicator, please follow the instructions below:
Or you can read a more detailed instruction on how to perform the installation.
You can open a trading account with any of the MT4 Forex brokers to freely use the presented here indicator for MetaTrader 4.