The Supertrend MT4 Indicator | FREE Forex Trading Indicator
A price trend serves as the foundation for many trading strategies. These can be trend following strategies for trading with the trend or trend reversal strategies for trading against the trend. The Supertrend indicator is a popular tool for determining the overall trend of a Forex pair or any other asset.
What Is Supertrend Line Indicator?
MT4 Supertrend Line indicator is a great tool to add to your MetaTrader platform.
Supertrend indicator uses a combination of a moving average and average true range to detect the trend of a trading instrument.
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.
Why Is MT4 Supertrend Indicator Useful?
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:
- Trend following strategies, where you want to trade with the trend.
- Trend-reversal strategies, when you want to trade if the trend changes.
- Risk management — you could use Supertrend to set a stop-loss or as a trailing stop.
- Exit signal, if you want to exit a trade when a trend is reversing.
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.
How to Read Supertrend Indicator?
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.
- ATR Multiplier — a multiplier to use with ATR value.
- ATR Period — a period for ATR indicator.
- ATR Max Bars — a number of bars to calculate the indicator value on.
How to Download and Use MT4 Supertrend Indicator?
You can download a free copy of MT4 Supertrend Line indicator along with its source code using the following link:
Supertrend Installation Instructions
To install the MT4 Supertrend Line indicator, please follow the instructions below:
- Download the indicator archive file.
- Open the MetaTrader 4 data folder (via File->Open Data Folder).
- Open the MQL4 Folder.
- Copy all the folders from the archive directly to the MQL4 folder.
- Restart MetaTrader 4 or refresh the indicators list by right-clicking the Navigator subwindow of the platform and choosing Refresh.
You May Also Like ❤ :
The extreme spike indicator is a Metatrader indicator that detects market trend extreme high and extreme low spikes. It is...
Heiken Ashi Nave is a MetaTrader expert advisor that uses the platform’s standard indicator of the same name to implement...
PersistentAnti EA (Measures persistence of price movements; trades against it) | FREE Forex Trading EA
PersistentAnti is a Forex expert adviser that takes advantage of the concept of trend persistence. The Forex market charts are...
Ichimoku Chikou Cross EA (Uses Ichimoku Kinko Hyo for signals, ATR for position sizing) | FREE Forex Trading EA
Ichimoku Chikou Cross is a MetaTrader expert advisor based on standard Ichimoku Kinko Hyo indicator with default settings. Specifically, it...