The Supertrend indicator is a popular trend-following tool used by traders to identify the prevailing market direction and potential entry or exit points. It is plotted on the price chart and changes color based on the direction of the trend—typically green for an uptrend and red for a downtrend.
Trade On Pocket Option: http://pocketoptioncapital.com
Traders often use the Supertrend to filter trades, entering long positions only when the indicator signals an uptrend and short positions during a downtrend. Its simplicity and effectiveness in trending markets make it a valuable component of many trading strategies.
Complementing the Supertrend, the Stochastic Oscillator is a momentum indicator that measures the level of the closing price relative to the high-low range over a specified period. It is primarily used to identify overbought and oversold conditions in the market, helping traders anticipate potential reversals. When the oscillator crosses above 80, the asset is considered overbought; when it drops below 20, it is seen as oversold. In combination with the Supertrend, traders can use stochastic signals to fine-tune their entries—such as entering a long trade when the Supertrend is green and the stochastic crosses upwards from oversold territory.
Lastly, Moving Averages serve as essential tools for smoothing price action and identifying support or resistance zones. Simple Moving Averages (SMA) or Exponential Moving Averages (EMA) are frequently used to determine the average price over a certain period. For example, a common setup includes using the 50-day and 200-day moving averages to gauge medium- and long-term trends. When combined with the Supertrend and the Stochastic Oscillator, moving averages can further confirm trade setups. A trade may be considered higher probability when all three indicators align—e.g., the price is above a rising 50 EMA, the Supertrend is signaling an uptrend, and the stochastic is turning up from oversold levels.
Open Account: http://pocketoptioncapital.com
Learn how to day trade. This video is dedicated to 'everyday' folks starting out with a smaller account - think $1000 or less. Like starting any career, there is a lot to learn when you're a day trading beginner. Here are some tips to steer you in the right direction as you start your journey. These tips will get you setup with the proper indicators and settings and strategy, help you decide what to trade and when to trade, show you how much capital you need, how to manage risk, and how to practice aday trad ing strategy effectively.
We're currently in our 13th year helping traders become successful in the live markets so we know a thing or two about leveraging a small account into serious wins.
Open Account: http://pocketoptioncapital.com
Risk Disclaimer: Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only.