Forex SuperTrend Indicator For MetaTrader 4
The SuperTrend indicator for MetaTrader4 is quite an amazing technical tool, created on the back of the ATR and CCI. Traders will find this tool quite helpful in terms of its ability to spot trends.
The SuperTrend can be deployed as a basis of a trading system that is centered on following trend. Understanding that the SuperTrend is built upon two indicators – CCI and ATR.
The CCI indicator has its standard parameter set at “50” which points the direction of trend movement, while the ATR indicator is deployed as a tool to define the indicator levels.
If the CCI pushes above “0,” the indicator either surges or moves flat (subject on the ATR). A negative CCI will translate into a declining SuperTrend (subject on the ATR as well).
Engaging the market following a correction while paying attention to the color of the SuperTrend indicator is a sure nice way to use this indicator. If the SuperTrend indicator line changes its color from red to green (it depicts price changing from a sell to buy), open a buy position after the first descending correction.
A sell is triggered if the color of the SuperTrend indicator line changes from red to green (place a sell after the first ascending correction.
The SupperTrend indicator can also be used to determine short term support and resistance levels. The indicator does however work better in a trending market. The SuperTrend indicator generates fewer false alerts as compared to the usual Moving Averages, hence it is preferred over a Moving Average trading system.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (TrendCCI_Period, Automatic_Timeframe_setting, M1_CCI_Period, M5_CCI_Period, M15_CCI_Period, M30_CCI_Period, H1_CCI_Period, H4_CCI_Period, D1_CCI_Period, MN_CCI_Period), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend, support and resistance