The Non Repainting SuperTrend Indicator is particularly stable and has a few advantages over the older version of SuperTrend indicators:
- It uses a moving (statistical) median of the arithmetic mean (High + Low)/2 of the bars instead of a moving average. The (statistical) median is known to be more robust than any average.
- It calculates both the Median and the ATR (average true range) 1 bar ago, whereas the original SuperTrend indicator takes the ATR and moving average of the current bar. If you use the current bar’s ATR, the current bar’s breakout is partly measured against its own range. This is particularly true if the ATR period is short.
- Signals: The Non-Repaiting SuperTrend indicator gives a reversal signal when the bar closes on the other side of the stop line.
- Magnified Market Price added for instant check of current market price
Non-Repainting Supertrend Indicator For MT4 uses two parameters, ATR (nbr_periods) and Factor (multiplier) with default values 10 and 4.0. The average true range or ATR is very important in Supertrend calculation as it signals the degree of the price volatility. Though we can play with those parameters, the default values will give us a pretty good picture of the trend.
The indicator has many more input parameters, however, these parameters are not as important as the first two ones. Their purpose is to describe different characteristics of the label and the display on the chart. They will not influence on the behavior of the indicator curve.
MT4 Indicator Characteristics
- Currency pairs: Any
- Platform: Metatrader 4
- Type: chart pattern indicator
- Customization options: Variable (Nbr_Periods, Multiplier, sidFontSize, sidFontName, NoteRedGreenBlue, sidRed, sidGreen, sidBlue, sidXPos, sdYPos, tagDisplayText, tag Text, tagFontSize, tagFontName, tagRed, tagGreen, tagBlue, tagXPos, tagYPos), Colors, width & Style.
- Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
- Type: support/resistance, pattern
How to read it
The indicator is very easy to use as it gives us an accurate reading about the trend.
If the line is above the price bar and it is colored red, the trend is down. If the line is below the price bar and it is colored blue the trend is up.
The change of the trend is displayed by the arrows. When a trend becomes bullish a blue arrow pointing upwards is shown on the chart while when the trend becomes bearish a red arrow pointing down is be displayed.
How to use it
A Non-Repainting Supertrend Indicator For MT4 can be used in a wider range of markets: Forex, Commodities, Indices, and Stocks. It can be used daily, weekly and also hourly charts. The indicator can be used alone or in combination with other indicators (oscillators or pivot points). It is used for determining entry points and for defining stop-loss levels. Generally, it works well in a trending market but not so well in a sideways market.
A blue arrow pointing up is a buy signal, while a red arrow pointing down is a sell signal. Additionally, the indicator acts as a support or as resistance and it can be used as a trailing stop loss for the existing trade.
When the indicator is in a bullish territory any dip towards the indicator line can also be used as a buying opportunity. In opposite, when the indicator is in a bearish territory any price movement towards the indicator line can also be used as a selling opportunity.
A conservative trader can use the indicator in the following way. A blue arrow and when the indicator in the higher timeframe is in a bullish territory is a buy signal. A red arrow and when the indicator in the higher timeframe is in a bearish territory is a sell signal.