Using three Supertrend indicators in combination with the 200 Exponential Moving Average (EMA) provides a multi-timeframe confirmation strategy that enhances both trend-following and entry precision.
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The Supertrend indicator, derived from average true range (ATR), excels at filtering noise and identifying clear directional movement. By layering three Supertrends with varying ATR multipliers and periods—such as (7,3), (10,4), and (14,5)—traders can capture short-, medium-, and long-term momentum shifts within a single chart setup. This stacking approach allows for better confirmation and reduces the chance of false signals, particularly in volatile or choppy markets.
The 200 EMA serves as a powerful trend filter, often considered the “line in the sand” between bullish and bearish market phases. When price is above the 200 EMA, traders typically seek long setups, while short setups are favored below it. Combining the 200 EMA with Supertrend confirmation gives traders a rule-based framework to avoid counter-trend trades and remain aligned with dominant market direction. For example, if all three Supertrends flip green while price is also trading above the 200 EMA, it suggests a strong bullish bias worthy of entering a long position.
This strategy is particularly effective on higher timeframes like the 1-hour or 4-hour chart, where noise is reduced and signals carry more weight. It also performs well across trending assets such as forex majors, indices, and cryptocurrencies. Entries can be fine-tuned with candlestick patterns or additional tools like RSI or volume spikes for added confirmation. Overall, this multi-layered approach provides a systematic and visually intuitive method for capturing high-probability trades while managing risk with greater confidence.
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Money Management: If you have $100 in your account, each open position should be $5 tops If you have $200 in your account, each open position should be $10 tops If you have $500 in your account, each open position should be $25 tops If you have $1,000 in your account, each open position should be $50 tops If you have $2,000 in your account, each open position should be $100 tops If you have $5,000 in your account, each open position should be $250 tops
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.
00:00In this video, I'm going to be showing you an insane super trend indicator trading strategy
00:04that will make you crazy money trading binary options. What's the super trend indicator is?
00:09Well, it's pretty self-explanatory. When you see a red line with the lower label, you sell,
00:14and when you see a green line with the higher label, you buy. Now, the super trend indicator
00:19identifies short to medium term uptrends and downtrends. Now, the super trend indicator is
00:25pretty neat on its own, but at times it can provide us with some pretty inaccurate data,
00:29especially during ranging consolidating market conditions like in this example we have over
00:34here. So, therefore, we're going to spice things up and we're going to make this strategy even better.
00:39What you're going to want to do is click on the indicators icon, and in the first column,
00:43second from bottom, you're going to want to click on the super trend indicator twice more.
00:47Now, you're going to have three super trend indicators on your chart. Now, once you've
00:51added these super trend indicators to your chart, we're going to be changing the input values of
00:55all three super trend indicators. So, the first super trend indicator, we're going to change the
00:59ATR period to 12, and we're going to keep the multiplier as 3. Now, the second super trend
01:04indicator, we're going to keep the ATR period as 10, and we're going to change the multiplier to 1.
01:09And lastly, the third super trend indicator, we're going to change the ATR period to 11,
01:14and the multiplier to 2. Now, once you've changed the input values of all three super trend indicators,
01:19your chart should look something like this. So these three super trends will provide us with
01:24far more confluence, allowing us to open better quality trades on a more consistent basis.
01:29Now, just to keep things simple, in order to open a buy position, you want to wait for all three
01:34green lines to appear below the candlesticks. And in order to open a sell position, you want to wait
01:38for all three red lines to appear above the candlesticks. Very, very simple rules to follow.
01:44Okay, so now that we've set the super trend indicators up, we're not done yet. We're going
01:48to make this strategy even better. In order to make this strategy even better, you're going to
01:53want to click on the indicators icon once again. And the third column to the right, fourth from bottom,
01:58you're going to want to click on the moving average indicator. So once you've added the moving average
02:02indicator to your chart, we're going to go ahead and change a couple of things. You want to change
02:06the period from 10 to 200 and the moving average SMA to EMA. Then you're going to want to go to styles
02:12and we're going to change the line color from green to white. And then you can go ahead and click on
02:17save. So the 200 day moving average will provide us with even more confluence, giving us a better
02:23idea of the long-term trend in the market. So to use the 200 day moving average to our advantage,
02:28when the price is below the 200 day moving average, we only open sell positions. When the price is
02:34trading above the 200 day moving average, we only take buy positions. And when the market is
02:40consolidating, you see the price bouncing up and down off the 200 EMA, like in this example we have
02:45over here, you don't want to be opening any trades at all. You'd rather want to wait for a firm uptrend
02:50or downtrend before making any trading decisions. This sort of discipline is very important, especially
02:55when it comes to this strategy. Okay. So now that we have everything set up, let's go over how to
03:01trade this strategy effectively. So when it comes to trading this strategy, we need two confirmations
03:06before we open any position. We need to know if the price is above or below the 200 day moving average,
03:11and this will help us make a better decision as to whether we should buy or sell.
03:15The second confirmation we need is provided by the super trend indicator. And here we need to see
03:20that all three lines are visibly below the candlesticks to open a buy position. And we need
03:25to see that all three lines are red above the candlesticks to open a sell position. Now let's
03:30get into a couple of examples on how we would trade this strategy. Just to inform you guys, I am on the
03:34one minute timeframe opening three minute positions only. This strategy works for any timeframe. I personally
03:40prefer the one minute timeframe. I like to get into a trade quickly. I like to get out of a trade
03:44quickly, get in, get out, take your money and run. That's what it's all about for me. Anyway, taking a
03:49look at the first example we have here on EuroCAD, as you can see, we've got our first confirmation.
03:53The price is trading above the 200 day moving average. And here we've got our second confirmation.
03:58As you can see, all three green lines appear below the candlesticks indicating that we should buy.
04:02Now, because we're on the one minute timeframe opening three minute positions, we would be opening a
04:06position on this candlestick roughly over here. And the trade would have closed on this candlestick
04:11over here. And that would have been a profitable trade. Moving on to our second example, we have
04:15here on Australian dollars, the Japanese yen. As you can see, we've got our first confirmation.
04:19The price is trading below the 200 day moving average. And here we've got our second confirmation.
04:24As you can see, all three red lines appear above the candlesticks indicating that we should sell.
04:29So we'd be opening a position on the opening of this candle over here. And the position would have
04:33closed on this candle over here. And again, that would have been another profitable trade.
04:38And that's how simple it is to trade this strategy. It's straightforward. It's easy.
04:42As long as you're disciplined and you stick to the rules, you will be profitable.
04:46So for those of you that still seem unsure, what I'm going to do is get into a couple of live trades
04:50and show you guys how I would trade the strategy. So sit back, relax and enjoy.
04:55So
05:08NASA Jet Propulsion Laboratory, California Institute of Technology
05:383, 2, 3, 1
07:08And that's how we do it. Three out of three trades. You're probably wondering why my balance is always something different.
07:21I do trade in my own time. So therefore, it's always something different. It's always something interesting. But besides that, we stuck to the rules. We kept it simple and got three pretty decent positions.
07:32Now, just keep in mind with this strategy, you're not always going to win. You will lose at times, but it's all about how you manage your risk. I do not recommend using more than one to three percent of your capital.
07:42If you do have a small account, it is understandable. At the same time, I also do not recommend that you open more than three to five trades per day. Take it easy. Keep things simple. Stick to the rules of the strategy and you will be profitable.
07:54But that will be all for now, folks. I hope you enjoyed the video. And if you did, smash a like on the video and subscribe to the channel if you are new. And I will see you in the next one.
