Supertrend Support Resistance Intraday Trading Strategy

Supertrend Support Resistance Intraday Trading Strategy

Supertrend Support Resistance Intraday Trading Strategy

Here we are going to learn a new unique intraday trading strategy using the Supertrend indicator.

As the name proposes, ‘Supertrend’ is a trend-following indicator plotted on prices. It is not difficult to utilize and gives an exact finding out about an ongoing trend.

A Supertrend is a trend following indicator like moving averages. It is plotted on price and the latest thing can essentially be controlled by its arrangement opposite cost. It is an exceptionally basic indicator and is built with the assistance of only two parameters period and multiplier.

At the point when we build the indicator strategy, the default parameters are 10 for Average True Range (ATR) and 3 for its multiplier. The average true range (ATR) assumes a critical part in ‘Supertrend’ as the pointer utilizes ATR to figure its worth and it flags the level of value unpredictability.

I think we know the basics of the Supertrend indicator. Now, let’s move to the strategy part.

The setting for the Supertrend indicator is 10 as a period and 3 as a multiplier.

When to Buy and Sell:

When price moves above the super trend indicator, the super trend starts working as a support and when the price moves below the super trend indicator, the super trend starts working as a resistance.

This is the theory of this strategy.

Buy Rule: Price should be above Supertrend indicator. When price touches super trend, we will initiate buy trade at the high of candle touching Supertrend indicator. Candle touching supertrend should be Green. See below Image.

Sell Rule: Price should be below Supertrend indicator. When price touches super trend, we will initiate sell trade at the low of candle touching Supertrend indicator. Candle touching supertrend should be Red. See below Image.

 

Stop Loss:  Minimum 1:2 risk to reward ratio.

Originally posted 2021-04-27 07:20:40.

sandesh.k0101

sandesh.k0101

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