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Currency Pair:

Any Major Currency Pair

Time Frame:

1 Hour and above

Indicators:

Nonlagdot (Price: 0, Length: 10, Displace:0, Filter: 0, Color:1, ColorBarBack: 2, Deviation: 0.0)

SuperTrend (Time frame: Current time frame)

Strategy:

Long Position:

The rules for long entry are as follows.

1. Nonlagdot turns to blue.
2. Blue dots should be above the Supertrend line.
3. Supertrend line color has to be green.
4. After all conditions are met, look for a rebound before entering the trade. When retracement starts, place a pending buy order right above the recent highest point.

Target:

It depends on the currency pair. If you are trading EUR/USD, you can take profit partially at 100pips, 150pips and 200pips. After you reach the first profit target, you can place a trailing stop.

Stop Loss:

60-70 pips

Example:

SuperTrend Strategy Buy Signal

In the picture above you can see the marked places. In the first box (marked as 1-2-3) you can see that Nonlagdot turned to blue above the Supertrend line and Supertrend line color is now green. Now you are going to wait for a retracement. In the next box (marked as 4), you can see the pair pulls back, consolidates. At this point, you are going to place a pending buy order right above the high level. When the pair resumes its uptrend, the order will be executed.

Short Position:

The rules for long entry are as follows.

1. Nonlagdot turns to red.
2. Red dots should be below the Supertrend line.
3. Supertrend line color has to be red.
4. After all conditions are met, look for a rebound before entering the trade. When retracement starts, place a pending sell order right below the recent lowest point.

Target:

It depends on the currency pair. If you are trading EUR/USD, you can take profit partially at 100pips, 150pips and 200pips. After you reach the first profit target, you can place a trailing stop.

Stop Loss:

60-70 pips

Example:

SuperTrend Strategy Sell Signal

In the picture above you can see the marked places. In the first box (marked as 1-2-3) you can see that Nonlagdot turned to red below the Supertrend line and Supertrend line color is now red. Now you are going to wait for a retracement. In the next box (marked as 4), you can see the pair bounced higher. At this point, you are going to place a pending sell order right below the low level. When the pair resumes its downtrend, the order will be executed.

Download SuperTrend Strategy Indicators and Templates for $2