Supertrend with Price Action: Perfect Forex Strategy

The Supertrend Strategy offers a straightforward approach to trading using the Supertrend indicator, enhanced with price action principles for clarity and effectiveness. By combining Supertrend with Support and Resistance levels, this strategy aims to streamline trading decisions while maintaining profitability. Here's a breakdown of the strategy setup and trading rules:

Strategy Setup

Timeframe: 5 minutes or higher

Suitable for any currency pairs

MetaTrader 4 Indicators:

- Zig Zag arrow (parameters: 30, 15, 7),

- Support and Resistance zones (default settings),

- Complex indicator with Supertrend (parameters: ATR 2.8, period 18, MA 18 periods).

Trading Rules:

Buy:

- Look for a black arrow formation on a support level.

- Confirm that the Supertrend indicator is positioned below the green-colored line.

- Ensure that the moving average (MA) line is also green.

Sell:

- Identify a black arrow formation on a resistance level.

- Confirm that the Supertrend indicator is positioned above the red-colored line.

- Verify that the MA line is red.

Exit Position:

- Set a stop loss at the previous swing high for a sell trade or swing low for a buy trade.

- Maintain a Stop Loss Ratio of 1:1.2.

Conclusion

This forex trading strategy is exceptionally simple and well-suited for traders of all levels, including beginners. By utilizing clear visual signals from the Supertrend indicator and incorporating key price action principles, it offers a streamlined approach to decision-making, enhancing both understanding and profitability in the forex market.

Conclusion This forex strategy is very simple and suitable even for beginners.