Combining the Supertrend indicator with the 166 EMA and 16 EMA creates a dynamic trading strategy that balances trend identification with precise entry and exit points.
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The Supertrend indicator is particularly effective in determining the overall trend direction by overlaying a simple line on the price chart that turns green for bullish trends and red for bearish trends. Meanwhile, the 166 EMA serves as a long-term trend filter, providing a stable perspective on market direction, while the 16 EMA acts as a short-term trigger for potential trade opportunities. This setup allows traders to capitalize on momentum while ensuring they trade in alignment with the broader trend.
A common approach using this strategy is to only enter trades when the price is above the 166 EMA for long positions and below it for shorts, ensuring trend confirmation. The 16 EMA then serves as a dynamic signal—when price crosses above it in an uptrend with Supertrend confirming, a buy trade may be considered. Conversely, when price drops below the 16 EMA in a downtrend, traders might look for shorting opportunities. This interplay between short and long-term moving averages enables traders to catch strong trending moves while filtering out false signals that may arise from short-term market fluctuations.
Risk management remains a crucial component of this trading method. Since the Supertrend indicator also suggests stop-loss levels, traders can place stop losses just below its green line for long trades or above its red line for short trades. Additionally, they may look for confluence with key support and resistance levels to refine trade entries. Using trailing stops based on the 16 EMA can help lock in profits while allowing traders to stay in a trend longer. By combining these indicators strategically, traders can construct a robust trading plan that prioritizes trend-following principles while maximizing precision and minimizing unnecessary risks.
Open Account: http://pocketoptioncapital.com
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.
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 and should not be considered an offer or solicitation to buy or sell any financial instrument. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results.
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Trade On Pocket Option: http://pocketoptioncapital.com
The Supertrend indicator is particularly effective in determining the overall trend direction by overlaying a simple line on the price chart that turns green for bullish trends and red for bearish trends. Meanwhile, the 166 EMA serves as a long-term trend filter, providing a stable perspective on market direction, while the 16 EMA acts as a short-term trigger for potential trade opportunities. This setup allows traders to capitalize on momentum while ensuring they trade in alignment with the broader trend.
A common approach using this strategy is to only enter trades when the price is above the 166 EMA for long positions and below it for shorts, ensuring trend confirmation. The 16 EMA then serves as a dynamic signal—when price crosses above it in an uptrend with Supertrend confirming, a buy trade may be considered. Conversely, when price drops below the 16 EMA in a downtrend, traders might look for shorting opportunities. This interplay between short and long-term moving averages enables traders to catch strong trending moves while filtering out false signals that may arise from short-term market fluctuations.
Risk management remains a crucial component of this trading method. Since the Supertrend indicator also suggests stop-loss levels, traders can place stop losses just below its green line for long trades or above its red line for short trades. Additionally, they may look for confluence with key support and resistance levels to refine trade entries. Using trailing stops based on the 16 EMA can help lock in profits while allowing traders to stay in a trend longer. By combining these indicators strategically, traders can construct a robust trading plan that prioritizes trend-following principles while maximizing precision and minimizing unnecessary risks.
Open Account: http://pocketoptioncapital.com
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.
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 and should not be considered an offer or solicitation to buy or sell any financial instrument. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results.
Intraday trading strategies, live day trading, live trading, binary options trading strategy, binary options, trading, binary trading, binary options trading, binary options trading strategy, day trading live, pocket option, pocket option strategy, best binary options brokers, pocketoption strategy 2025, binary trading, binary options indicator
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LearningTranscript
00:00This method uses just two simple but powerful indicators, the super trend and moving averages,
00:05to help you spot high probability trades. I'll also share the exact settings you need for these
00:11indicators, so make sure to watch the video till the end. Without the right settings,
00:16this strategy won't work as effectively. Risk Warning. Trading binary options involves risk.
00:23You could lose your money, so trade responsibly. This video is only for educational purposes and
00:28not financial advice. Always trade with funds you can afford to lose and do your own research before
00:34entering any trade. Alright traders, now let's break down the exact chart setup and entry rules
00:39step by step. Chart and trade settings. Candle type. Hyken Ashi. Time frame. 30 seconds. Trade duration.
00:471 minute. Now let's look at when to enter sell and buy trades. For a buy trade, follow these rules.
00:53The grey super trend line should cross above the blue EMA. Both the blue EMA and the white EMA must
01:00be sloping upward. The white EMA must be below the Hyken Ashi candles. When all these conditions are
01:06confirmed, it's time to enter a buy trade. For a sell trade, here's what you need. The red super trend
01:13line must cross below the blue EMA. Both the blue EMA and the white EMA should be sloping downward.
01:19The white EMA must be above the Hyken Ashi candles. When all three signs appear, it's a strong signal to
01:27enter a sell trade. Important tips before you trade. Only enter trades when all indicators agree. Avoid
01:34taking trades during sideways or unclear markets. This strategy works best during strong trends,
01:40either uptrend or downtrend. Before using this strategy with real money, practice it on a demo account.
01:46Also, backtest it on past charts to understand how it behaves in different market conditions.
01:52This will build your confidence and reduce risk. Now that we've covered the rules and the setup,
01:58let's put this strategy into action and take a live trade together. Stay tuned. You don't want to
02:04miss this live trade example. According to our strategy, this is a perfect buy trade setup,
02:09and here's why. The grey super trend line has just crossed above the blue EMA. That's our first
02:15confirmation. Both the blue EMA and the white EMA are clearly sloping upward, which means we're in a
02:21strong uptrend. That's the second confirmation. And finally, the white EMA is below the Hyken Ashi
02:27candles, confirming the upward momentum and giving us the third and final confirmation. With all three
02:34conditions perfectly aligned, we've taken a buy trade based on our strategy. Now it's time to wait and
02:40see. Will this trade end in profit or not? Let's sit tight and watch how this trade plays out in real
02:46time. This is where patience is key. In trading, entering at the right moment is just as important
02:52as knowing when to wait. Remember, don't rush into trades without confirmations. Many traders lose
02:59simply because they skip the rules. Stick to the setup. Let the indicators guide you. We have won this
03:05trade. That was a clean and confident entry based on our strategy, and the market respected it
03:11perfectly. But don't stop here. Let's keep the momentum going. Now we'll look for the next perfect
03:18trade setup using the same rules. Now here's a perfect sell trade setup based on our strategy.
03:24Let's break it down step by step. First, notice the red super trend line has just crossed below the blue
03:31EMA. This is our first confirmation. Next, both the blue EMA and white EMA are sloping downward,
03:38clearly showing a strong downtrend. That's the second confirmation. And finally, the white EMA is now
03:44above the Heikinashi candles, confirming that downward pressure is strong. Since all three conditions are
03:51matched perfectly, I'm entering a sell trade right here. Let's now wait and watch how this trade performs.
03:57While we wait for the result, always remember this. Never skip the rules. Enter only when you see clear
04:04confirmation from all indicators. Avoid trading during flat or sideways markets. This strategy
04:10works best in strong trends. The candle is closing soon. Will this trade go in our favor? We've won this
04:17trade too. That's another great confirmation that our strategy is working beautifully when applied with
04:23discipline and precision. Now, before we jump into the next setup, let's quickly go over the fine-tuned
04:28indicator settings that make this strategy so powerful. Indicator setup. Pay close attention to
04:35these values. EMA, white line, type, exponential moving average, EMA, period, 166. Purpose, helps you identify
04:45the overall trend direction. Above the Heikinashi candles, downtrend, below the candles, uptrend.
04:53Second EMA, blue line, type, exponential moving average, period, 16. Purpose, works with supertrend for
05:02crossover confirmations, supertrend. Indicator, period, 13. Multiplier, 1.3. Roll, confirms entry signals when it
05:12crosses the blue EMA. These are the exact settings I'm using in this video, so make sure you apply
05:17them correctly on your chart. Using the wrong values can give you false signals. Now that you know the
05:23full strategy, the chart settings, and the perfect indicator values, let's look for the next trade
05:29setup using the same rules. According to our strategy, this is a perfect sell trade setup, and
05:35here's why. First, the red supertrend line has just crossed below the blue EMA. This gives us our first
05:41confirmation to consider a sell. Next, both the blue EMA and the white EMA are sloping downward,
05:48which clearly shows that the market is in a strong downtrend. This is our second confirmation. And
05:54finally, the white EMA is now above the Heikinashi candles, confirming that downward pressure is strong
06:01and consistent. That's the third and final confirmation. Since all three conditions are perfectly
06:06aligned, we've entered a sell trade based on our strategy. Now let's wait and watch the result.
06:12This is where patience matters. You've followed the rules, you've waited for confirmation, and you've
06:18entered with confidence. Now it's time to let the trade play out. As we approach the end of this trade,
06:24always remember, sticking to the setup is what separates successful traders from those who rely on
06:30guesswork. Just a few seconds left. Let's see how this trade closes. We won this trade. That's another
06:37solid confirmation that when we follow the rules, the results speak for themselves. This strategy using
06:43supertrend and EMAs is not just powerful. It's simple, clear, and perfect for both beginners and
06:49experienced traders. But remember, the real key to success is discipline and practice. If you found this
06:56strategy helpful, do me a quick favor, like this video to support the channel, comment below if you
07:02want me to test this strategy on other platforms, subscribe, and turn on the bell so you never miss
07:06any upcoming strategies. And don't forget to share this video with your trading friends who need a
07:11simple and effective strategy. Thanks for watching till the end. I truly appreciate your time and support.
07:17I'll see you in the next video with another powerful trading setup. Till then, stay safe, trade smart,
07:24and keep learning. Bye and happy trading.