Trend is your friend - supertrend indicator discussion

This is a thread for the supertrend indicator. All trades based on this indicator as well as suggestions on how to improve it or combinations with other indicators are welcome . The strategy is simple you buy when it is green , you sell when it is red. You use trailing profit and some good money management. This is not yet a finished strategy and needs a lot of improvement . That is why i am starting this thread to share knowledge, experience and trades with fellow traders.

how long have you been trading it? can youpost some of your chart samples to see how you are using it?

I have beeen trading for at least two years in several pairs. not very systematically. From my experience though i believe that it has a lot of potential as it helps you identify trend and keeps you in for the most part of the trend . My main problem are the whipsaws in ranging markets thats why i am trying to fiulter with other indicators. This thresd is like a worksho p for anyone who want to contribute his thoust . I will post some examples soon

Below is a succesful entry . The indicator manages to catch you the most part of the downtrend. You get almost 1300 pips

Below is an example of false entries. It have costs you more than 600 pips but you took tehm back when the trend started. None the less the question is how do we filter the signals. Should we use some oschilators or what . Feel free to contribute. Also since i am not familiar with programming i was wondering if someone could create an indicator which will alert em whenever the trend changes

For starters, maybe try taking trades only in the direction of the daily open line (d.o.l.) ....if st shows buy, but price hasn't broken d.o.l Wait....less trades but maybe more profitable....maybe could act as added confirmation...in fact, you could even add the weekly open line...even less trades but MORE accuracy...let me know if you need the indicator. dol attached....from the looks of it, I would use the ST as a signal...but not for entry. It could serve as an alert for trend direction. For trigger you could use stoch or rsi. (for stoch, I like 28,3,3 setting, less noise)

Just one example: you get signal...to enter sell...but stoch shows buy.....and candles show bullish..... also, Trendline can be used for confirmation and can even get you in early...as per Friday buy:

Thanks. usually stock already gives the same signal i use 14.3. 3, Biut i thought to try it as to if is overbought or oversold. Not great results

Please use Trend Line, Fibonacci lines along with the Super trend Indicators to get a good winning of Trades. Please note that always use H1 time frame for confirmation of trend.

Please see the attached snap shots.

Thanks

Regarding the money management , one thought is to enter when you get the first signal of trend change and then wait for a retracement close to the line to add.

also this indicator is better to use in 4h,daily, weekly time frames in order to avoid several false signals

Just a thought: laid this on several pairs and found less trades, but more accuracy when all conditions are met for buy or sell....

Thats good . Actuall y can you do that with supertrend in lower frames intead of heiken ashi ? Unfortunately i am not a programmer

I am not a programmer either, probably would be best for you to test drive this as an idea and introduce under Trading System thread for more visibility and attract a programmer there..

Hi all,

Iam using the Supertrend (10.3) with the ADX (14) indicator and some trade hour time restriction:

Supertrend close above or under the Line = buy/sell market
ADX must be over 20 and comes from a belower point
Only trades after market open (europe and US)

What do you think about it. Happy to get some feedback.

I'm using SuperTrend with Forex and Stocks, but sometimes the SuperTrend give too many false signals

How do I find the best parameters to use the SuperTrend and avoiding false signals?

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hey destiny.... the supertrend is one of a handful of indicators meant to mimic psar.... bbands stop is another..... while all 3 might be used as a stand alone signal, at least in my experience that's a lot to ask of any indicator.....

false signals can be reduced by using them as a filter only, not as a signal.....

or by using any or all of them on higher times frames than your trading and using a confirming signal on the lower time frame for your entry.....

i''m sure you know this but some might not..... below is a rough visual example for those that might be new to trading.....

place all 3 on a daily blank chart such as below.... place red line on the down trend bar and a lime line on the next buy uptrend bar.....

then remove the 3 indicators... leave the lines.... drop down to a 240 chart and place the price bars back on the chart...... move to those 2 lines.....

place some other type signal on the chart, mine are the arrows..... if we take only the trades that agree with higher time frames trend, there would be very few, if any, losing trades....

if we jump back to the daily, using the same or different signal for entrys, quite often there also will be few losing trades if we take only the trades that agree with the trend.....

well refined and well defined entrys when used with the psar type filters should improve results.....

or at least it does for me......h
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You also can try to apply 4 or 5 SuperTrend with different settings. You have to change the multiplier of your indicators, for example, 2 / 2.5 / 3 / 4.

Then you have to look for yourself in which setting provides the least false signals.



This tutorial shows you how to find the perfect SuperTrend settings.