Kolier_SuperTrend_Indi Indicator For MT4
The Kolier_SuperTrend_Indi Indicator For MT4 is a modified version of the SuperTrend indicator that consumes less resource than the original MT4 indicator. The SuperTrend analyzes price momentum and volatility to signal traders when a trend gets established. The indicator values are calculated using two parameters, namely Average True Range (ATR) and Factor (multiplier). Buy and sell signals get generated when the indicator starts printing either below the closing price or on top of the closing price. It can be used on intraday, daily, and weekly charts, and works well during trending market phases. The Kolier_SuperTrend_Indi Indicator For MT4 also acts as strong resistance and support zones. Traders can also use it to locate areas to place trailing stops for open positions.
Trading ideas with the Kolier_SuperTrend_Indi Indicator For MT4
This indicator is an extension of the super trend indicator. Essentially this indicator will show you what the trend direction is, using lines that are either colored in red or green. When the market is trading in an uptrend, there will be a green line floating just below the price action.
And when the market is trading in a downtrend, there will be a red line lurking right above the price action. Intuitively, most traders will gravitate towards the idea of using this indicator to trade reversals which is a good trading idea to follow because the signals this indicator generates are quite reliable.
However, it is also worth mentioning that we need to not only trade the reversals based on color changes alone but we also need to trade reversals based on price action patterns. By this, I mean that we need to look for moments in the market where the asset prints out a really strong reversal candlestick pattern. And on this basis we will then formulate our trading ideas.
Kolier_SuperTrend_Indi Indicator For MT4 - Buy And Sell Entries
Below, I have mentioned a few examples of how we can go about using this indicator but first we will start off with the reversal trade setup.
In the screenshot above you can see that I pointed out to you two opportunities. The first one was a bullish reversal trade and the second one was bearish reversal trade. On the left-hand side, we have the bullish reversal trade labeled as 1.1 and 1.2.
The first thing that we waited for was for the market to make a reversal which was indicated by the indicator as it changed to green. Once we had this potential bullish reversal alert, we then turned to the price action itself to look for moments when the market is giving us reversal candlestick patterns of a bullish nature.
That was indeed the case because the market gave us a bullish engulfing pattern thus making it a good moment for us to buy. Beyond that, in this entry, we also pointed out a good region for you to place your stop loss level. All you need to do is just refer to the green line and position your stop loss right below the green line.
Once you position your stop last you can just let It the trade run accordingly because the stop loss is in an area considered as a safe zone so to speak. In the next example to the right-hand side of the screenshot - we have a bearish reversal trade setup labeled as 2.1 and 2.2. The trade setup is slightly different because what happened was we identified a reversal pattern before the color change.
The reversal pattern came in the form of a double top. A double top pattern is just an M-shaped pattern that is created by the price action. This is one of the strongest reversal patterns in the market because it is indicative of trend-exhaustion as the market has reached a possible point of resistance.
It cannot continue with the underlying uptrend. Once we identified this double top pattern, the next step was to wait for the moment when the indicator changes from green to red, which made the conditions now fit for selling. Just like the long trade example, we had before, we will also use the indicator as a guideline for setting a stop loss.
Right above the price action, you find the red line oscillating. So you will position your stop loss close to or right above this red level because this region is considered as a safe zone meaning that the market might not reach that region during the period of the short-term trade. Once you grasp this basic concept, you can go ahead and implement the strategy independently on your own trading account.
However, just bear in mind that you need to do your own extensive testing and simulation prior to officially executing this trading system. In both buy and sell examples, I mentioned that you can use the indicator for setting a stop loss. This is true but you can also use it as a source of guidance for manually trailing your stop loss as shown in the image below.
The same way you set your stop-loss the moment you open your trade - you will basically follow the line of the indicator and then drag your stop loss along that line so if it is a buy trade make sure that your SL remains slightly below the line for a buy and it will remain slightly above the red line for a sell trade.
However, if you do not have much screen time available because most people have jobs. What you could do is that you could measure off the distance of your initial stop loss and then import that number into the automatic trailing stop quantity. So once you insert that quantity in the form of points or pips, as the market progresses in your favor the stop-loss will be trail automatically.
Just know that it is slightly different from the manual method because it will not always be below the green line if it is a buy trade or above the red line for a sell. Because the distance of the length of the stop loss and the trailing stop order is predefined the moment you open the trade. Nevertheless, this is a great indicator to use. You can use it for trading reversal trade setups and you can also use it for manually trading your stop loss or for setting and activating automatic trailing stops.