This is a straightforward trading setup predicated on moving average crossover coupled with supertrend indicator. There are numerous setups obtainable that combines supertrend indicator along with additional indicators to give greater results. The setup we will discussed here would make use of supertrend indicator(11,2) along with 8 and 15 EMA crossover.

Supertrend is a great indicator of trend direction. Nonetheless it does give fake signals in sideways trends. The objective of adding EMA crossover to the technique is to lessen the false signals.

Supertrend - EMA Crossover trading Strategy

Supertrend(11,2) with 8 EMA & 15 EMA Crossover

Buy

Buy when 8 EMA crosses 15 EMA from below upwards and Supertrend indicator has alreday provided a buy indication in the last two candles. If supertrend indicator provides buy signal soon after the bullish EMA crossover.

Sell

Sell when 8 EMA crosses 15 EMA from over downwards and Supertrend indicator provides given a sell indication in the last two candles. If supertrend indicator provides sell signal soon after the bearish EMA crossover.

Stoploss and Trails

Stoploss to be positioned at the lower or upper peak of the Supertrend signal. Trailing is performed along with Supertrend indicator graph.

Profit/Loss and exit booking

Any reverse signal by EMA crossover or Supertrend indicator can be an exit. No profit booking guideline is defined, and positions to keep so long as we don’t get yourself a exit transmission or get halted out.

Verdict

It is a straightforward strategy, and gives great results when traded on indexes and with an acceptable money management technique. Like any various other technique, it has it’s personal merits and demerits. Please be aware that trading involves significant amount of risk. It really is recommended that before gambling your capital in virtually any strategy, you need to try the suitability by performing paper trades.

Here is future & nse currency tips based on above trading strategy Nifty Future, BankNifty Future, USDINR, GBPINR, EURINR.


Learn what is supertrend and its calculation