The Supertrend indicator is a popular tool among traders for identifying trends and generating buy/sell signals. While its default settings (typically a period of 10 and a multiplier of 3) are a good starting point, experienced traders often employ multiple Supertrend settings simultaneously to gain a more comprehensive view of market dynamics. This "triple Supertrend" approach involves using three distinct Supertrend indicators, each with varying sensitivities, to filter out noise, confirm trends, and optimize entry and exit points. By observing the alignment or divergence of these different Supertrends, traders can make more informed decisions and potentially improve their risk-adjusted returns.
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A common application of the triple Supertrend strategy involves using a fast, medium, and slow Supertrend. For instance, a fast Supertrend might have settings like a period of 7 and a multiplier of 2, designed to capture early trend changes and provide quick entry or exit signals. A medium Supertrend could use the default 10-period and 3-multiplier settings, offering a balanced view of the prevailing trend. Finally, a slow Supertrend, with settings such as a period of 14 and a multiplier of 4, provides a broader, more conservative perspective, helping to confirm major trend directions and filter out minor market fluctuations. The idea is to take trades only when all three Supertrends align in the same direction, providing strong confirmation of a sustained trend.
This multi-setting approach significantly enhances the reliability of Supertrend signals. For example, a trader might only initiate a long position when all three Supertrend lines are green and below the price, indicating a strong uptrend across different timeframes or sensitivities. Conversely, a short position would only be considered when all three Supertrends are red and above the price. Furthermore, the different Supertrend lines can act as dynamic support and resistance levels, as well as trailing stop-loss points. The faster Supertrend can be used for tighter stop-losses for aggressive traders, while the slower Supertrend offers a more resilient stop-loss for those aiming to ride longer trends, thereby allowing for adaptable risk management based on market conditions and individual trading styles.
🔧 Indicator Settings: Supertrend 1: ATR Period 10, Multiplier 3, Line Style 4px Supertrend 2: ATR Period 10, Multiplier 2, Line Style 3px Supertrend 3: ATR Period 10, Multiplier 1, Line Style 2px
📊 Best Time to Trade: European Session, New York Session (⚠️ Avoid major news events)
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