The super trend indicator. Known for it s simplicity, and it s scary predictiveness
of the market. Even by itself, this indicator is pretty decent. But in this video, I m going
to share one of my secret strategies I like to do with this indicator, that make s it
so much better. Let s get straight to it. If you haven t heard or used this indicator
before, well its pretty good at finding trends in the market. Hence the name. Why this indicator
is so powerful is because it does not only track the momentum of the market, but it also
uses ATR. Which basically means that it also takes volatility into consideration.
I m going to show you how to take advantage of this and make a lot of profitable trades.
First, let s add the indicator to our chart. To do this, just go to the indicators tab
on trading view, type in super trend and make sure your select this one right here.
It s probably one of the easiest indicators to use on the planet. When the line s green,
you buy. When the line is red you sell. Pretty self explanatory.
But just like any other indicator, this indicator by itself has some problems. Let me explain.
As you can see here, the indicator is doing a great job at finding the trend. It s great
at showing when the market has high momentum in either direction. The problem is, the indictor
is always giving buy and sell signals, even when the market is moving sideways and doesn
t have a lot of momentum. And as we all know when the market is moving
sideways with little momentum, it s very risky, and very hard to predict which direction it
will go. And as you can see, whenever the market does
moves sideways, the indicator has some losing trades.
That s exactly why, if you just use this indicator by itself, and went in every time it said
buy your portfolio probably wouldn t look too hot.
But, I m going to show you a solution to this problem, so we only go in if the market is
truly in a trend. The first strategy I m going to share with
you is a great one to have in your trading arsenal. And that involves adding 3 super
tend indicators. Let s go a little more in depth.
Once you have 3 super tend indicators added to your chart, you re going to want to change
the settings a bit. Go to the inputs tab and change the ATR period
to 12 and the atr multiplier to 3. The next one you are going to set it as 10, then 1.
Then the 3rd one you are going to set it as 11, then 2.
Then go to the style tab and turn off these long and short icons.
So when you are done, your chart should look something like this.
Now how this strategy works, is we will only go in if all the lines are the same color.
Let me show you an example. So here you can two of the lines are green,
but one of the lines are red. This is telling us that market isn t in full momentum, and
is moving sideways. So we don t go in yet. We wait for a little bit, until all the lines
turn green, we enter a long posistion here. And look what happens, the chart goes up.
Let s look at one more example. Here we are looking for a short trade, 2 of
the top lines are red, but the bottom line is still green. We wait it out until all the
lines turn red, enter a short trade here, profit.
Now, you may be asking yourself, but how do I know when to exit the trade ? Well that
s a good question, there are actually a lot of different ways to know when to exit the
trade. You can do the classic, set a take profit
at a 1.5 ratio. Whenever the price hit s that mark you exit the trade.
Another exit strategy is when one of the lines change color.
So here you can see all the lines turned the same color, we entered, we got a bunch of
profit, then once one of the lines turn red, we exit the trade.
Another strategy can use is the pairing the super trend indicator with a 200 day moving
average. Why this strategy is so powerful, is because the super trend indicator is very
good at finding short term trend, and the 200 day is good at finding long term trends.
Let s add these indicators to our chart. Go to the indicators tab, add the super trend
indicator, and just keep the default settings. Next had an exponential moving average, and
change the length to 200. Now that we have the indicators set up, lets
move on to how to actually use this strategy. The strategy is simple. We will only enter
a long trade if the super trend line is green, and the price is above the 200 day moving
average. We only enter a short trade, if the super
trend line is red, and the price is below the 200 day moving average.
let me show you an example. So here you can see the super trend line is
green, but the price is not above the 200 day moving average yet, so we wait. Once the
price is over the 200 day, and the line is still green, this is where we enter the trade.
You can exit the trade, by doing a 1.5 profit ratio, or by selling simply when the super
trend line turns red. Let s take a look at a short example.
As you can see, the super trend line is red. But, the price is still above the 200 day,
we wait for the price to go below the 200 day, make sure the super trend line is still
red, and then we enter a short trade. Next, I m going to show you a bonus strategy
using the ichimoku indicator. To add this indicator, go to the indicators tab and type
in ichimoku. We are also going to clean up our chart because
this indicator s default setting are really messy. Just uncheck the top 3 box, and the
change these plot backgrounds to purple, so it s easier to see.
Now that we have that setup, let me explain how the strategy works.
So this purple are is called the kumo cloud. We will only enter a long trade if the super
trend line is green, and the price is above the kumo cloud. We will not enter the trade
if the price is is in, or below the cloud. It s the exact opposite for shorting. We only
enter a short trade if the super trend line red, and the price is below the kumo cloud.
Let me show you an example. So here the super trend line is green, but
the price is still below the kumo cloud, so we wait. Then the price enters the kumo cloud,
but we still wait until it is above the kumo cloud. We wait, then it finally goes above,
we make sure are super trend line is still green. We enter the trade.
Here s a short example. The super trend line is red, we don t enter until the price goes
below the kumo cloud, once it does, we enter the trade.
For exit strategies, you can again do a 1.5 profit ration, or you can exit the trade once
the price goes inside the kumo cloud. Let me show you an example.
So here we entered a trade because the super trend line was green and the price was above
the kumo cloud. The price starts go, the heads back down into the kumo cloud. The moment
the price hits the cloud, we exit the trade. I just showed 3 different strategies to use
with the super trend indicator. All I ask in return is if you take 2 seconds out of
your day and like this video. Try these three strategies and let me know
which one worked the best for you! If you want to see 4 price action secrets
that only the top 5% of traders know, watch this video, because I give away some pretty
insane secrets. Thanks for watching, and ill see you guys
next time.