📊 Super Trend: The Ultimate “Traffic Light” for Trading

Imagine if the market had a simple traffic light: Green means Go, Red means Stop.

The Super Trend indicator is exactly that. It is one of the most popular trend-following tools because it strips away the noise and answers the only question that matters: “Is the trend Up or Down?”

In RelicusRoad Pro, we’ve optimized the Super Trend to be your primary trend filter, ensuring you never trade against the dominant market flow.

What is Super Trend? (And How It Works)

Super Trend is a hybrid indicator. It combines Trend Detection with Volatility Analysis.

It doesn’t just draw a line; it calculates the Average True Range (ATR) of the market.

• High Volatility: The line moves further away from price (giving the trade room to breathe).
• Low Volatility: The line tightens closer to price (locking in profit).

This dynamic nature makes it superior to static Moving Averages, which often get “whipsawed” in choppy markets.

The 3 States of Super Trend

🟢 Bullish State (Green Line)

• Condition: Price closes above the Super Trend line.
• Meaning: The bulls are in control.
• Rule: Only look for Long (Buy) positions. Ignore sell signals from other indicators.
• Support: The Green line acts as dynamic support.

🔴 Bearish State (Red Line)

• Condition: Price closes below the Super Trend line.
• Meaning: The bears are in control.
• Rule: Only look for Short (Sell) positions. Ignore buy signals.
• Resistance: The Red line acts as dynamic resistance.

🟡 The “Flip” (Trend Change)

• Condition: Price crosses and closes on the opposite side of the line.
• Meaning: The trend has likely reversed.
• Action: Close existing positions and prepare for the new direction.

Professional Super Trend Strategies

Strategy 1: The “Pullback & Kiss” (Entry)

Don’t chase the flip. Wait for the value.

1. Identify: Super Trend flips to Green (Bullish).
2. Wait: Do not buy immediately. Wait for price to pull back and touch (or get very close to) the Green line.
3. Trigger: Look for a bullish candlestick (pin bar, engulfing) rejecting the line.
4. Entry: Buy the bounce.
5. Stop Loss: Just below the Super Trend line.

Why it works: You are buying the dip in an uptrend, with a very tight stop loss.

Strategy 2: The “Trend Rider” (Exit)

Super Trend is arguably the best Trailing Stop tool in existence.

1. Entry: You enter a trade based on any strategy (Breakout, News, etc.).
2. Management: Instead of a fixed Take Profit, you place your Stop Loss on the Super Trend line.
3. Trail: As price moves in your favor, the Super Trend line moves with it. Keep moving your stop to the new line level.
4. Exit: You only exit when price finally crashes through the line.

Why it works: This prevents you from selling too early. It forces you to stay in the trade until the trend is truly dead.

Strategy 3: The “Multi-Timeframe Filter”

Don’t get trapped by a 5-minute fakeout.

1. Check H4: Is the 4-Hour Super Trend Green? (Major Trend is Up).
2. Check M15: Wait for the 15-Minute Super Trend to also turn Green.
3. Execute: Take the M15 trade.
4. Avoid: If H4 is Red, ignore all M15 Green signals. They are likely just retracements that will fail.

Avoiding the “Chop” (False Signals)

Super Trend has one weakness: Sideways Markets. If the market is ranging flat, price will cross the line back and forth, generating constant false signals (losses).

How to filter false signals:

1. ADX Filter: Use the Average Directional Index (ADX). If ADX is below 20, the market is ranging. Do not use Super Trend.
2. 200 EMA: Only take Green Super Trend signals if price is also above the 200 EMA.
3. Visual Check: If the Super Trend line is flat (horizontal) for a long time, stay out. Wait for it to slope up or down.

Common Mistakes to Avoid

1. Trading the “Flip” Blindly: Just because the line turned Green doesn’t mean buy instantly. You might be buying the top of a wick. Wait for the candle close.
2. Ignoring Volatility: In crazy news markets (NFP), price can spike through the line and come back. Widen your stops during high-impact news.
3. Using it for Counter-Trend: Never use Super Trend to pick tops or bottoms. It is a trend-following tool, not a reversal tool.

Conclusion

Super Trend is the discipline that most traders lack. It forces you to be on the right side of the market and keeps you in winning trades longer than your emotions would allow.

If you are tired of exiting early or buying falling knives, put Super Trend on your chart and obey the traffic light.

Ready to ride the trend? Get RelicusRoad Pro and start trading with the trend today.