Crypto Academy Week 5 Homework Post for @stream4u on All About SuperTrend Indicator by @hadassah26

Good day beautiful Steemians, I am @hadassah26 and I will be treating Super Trend Indicator as an assignment on All About SuperTrend Indicator by @stream4u as a requirement for week 5 homework on the Steamit Crypto Academy community.

The Super Trend Indicator:

The SuperTrend MT4 Indicator is based on a trend following method which is used to identify if prices are trending upwards or downwards. source

I will define the super trend indicator as a dynamic realtime support and resistance level indicator.

This tells us that the super trend indicator not only gives us a quick look at the current trend price is going, it also tells the immediate support and resistance regions.
This which is great for trading makes the super trend indicator a wonderful tool for trading.

How to setup the Super trend on chart and what are the setting needed to configure:

As an MT4 trading fan, I usually trade with the MT4 trading interface.

How to use the super trend indicator on MT4:

First download the super trend line indicator from source
Open zipped file, and copy MQLTA MT4 Super trend line form indicator folder.

Open MT4 app, goto open data

Open indicators folder under MQL4 folder

Paste copied Super trend line indicators folder.

Restart MT4 app and select MQLTA MT4 Super trend line from Custom indicators

Fix your desired settings under inputs.

Your Super Trend indicator is set and chart now looks something like image below:

[pic]

How super trend indicator shows buy indications:

When the indicator is above price, it shows it is currently selling or rather on a sell trend, so also when price is above the indicator, it shows that price is on a buy trend,

When We can place a Buy Trade with the help of SuperTrend Indicator?:

Now knowing the current trend price is on, candle stick patterns can be used as entry or re-entry points, Hammer candlestick touching or almost touching the Super trend support line can be a great buy entry point,

So also hanging man doing same almost touching the super trend resistance line may be a good sell entry point as shown below:

When we can place exit/square off, sell order with the help of SuperTrend Indicator? :

When previously bullish price moves below the super trend green line, then it is a good exit buy signal.

When previously bearish price moves above the super trend red line, then it is a good exit sell signal.

How false indications look in SuperTrend Indicator? :

Price movements sometimes involves noise, making indicators malfunction sometimes, that is why it is better to trade on a higher time frame, as it is said the higher the time frame, the lower the noise,
False indicators still show up few times on the super trend indicator, below are positions where the super trend line shows false indication.

picture above shows a false buy signal indication.

According to your view what Stop loss you will suggest?:

As a forex trader risk is to be kept minimal therefore stop loss is of essence, I will suggest using a stop loss some pips below the super trend line.

The red line above the super trend indicator resistance line is a good stop loss point from my opinion.

Conclusion:

With the wonderful Super trend line indicator, even newbies can have a go on trading since it basically shows one support and resistance levels and current price trend in one indicator.
I totally prescribe the use of the super trend indicator to fellow forex traders as it has proven to be of great reliability.

Thanks for reading through my homework I hope I was able to answer all the questions necessary.
@hadassah26

Cc @stream4u
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