A Forex SuperTrend Trading Strategy
The SuperTrend is designed to follow the trend. However, I am using the Linear Regression to identify the trend. So I am going to reverse the SuperTrend and enter Long when the indicator turns negative. The logic of this is to enter on a temporary weakness in the expectation that the market will continue in the direction of the trend. I use the standard settings of a 20 period lookback period and an offset of 2. Bollinger Bands are another indicator that I use regularly.
They are a good way to set exit levels that adjust to market conditions. Everybody has their own natural style of trading. Whether you like to take profits quickly or leave them to run as far as possible.
What type of indicator you like and what timeframe you use. The best way to discover and refine your strategies is to test them using historic data.
One of the easiest ways to do this is to use a Tradinformed Backtest Model. SuperTrend Indicator line green. PFWinner above zero line. If these conditions agreed to buy. Buy when the price bounce on the supertrend indicator and Stochastic crosses upward. SuperTrend Indicator line red. PFWinner below zero line. If these conditions agreed to Sell. Trading Instruments The best instruments for successful online Forex trading. We will navigate you through the website and answer all your questions!
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