Could someone please help me with the Exiting strategy for supertrend indicator?
Hello Trader,
SUPERTREND is an entry as well exit indicator.
Unless a trend in very strong with institutional buying the super trend signal is not reliable on its own to give you enough space to make a profitable exit in an intraday trade.
If you are looking for an early exit signal to use with your super trend indicator:
USE: ADX indicator. Exit as the ADX signal line starts descending.
You can use this exit signal for both LONG and SHORT positions.
Focus on Entry first. If entry is right, then the exit is smooth.
In shorter TF such as 5 min, donot make entries just because Supertrend flipped the signal. Wait for proper entry. When you enter the trade, you should have 3 important exit points in mind. Stop Loss and Profit Exit or Exit without any of them hitting.
Let me define your entry. Say Supertrend in 5 min TF and flipped its signal to Short. So, the trend is down. Donot enter immediately. It is possible to miss some fast moving trades if we donot enter immediately...but that does not matter. We want a trade which is controlled and manageable. So, coming to the entry criteria, the trend is down, wait for a green candle to form. Go short below that candle, if the price takes it down by next candles. If the price does not take down green candle low and keep on forming green candles, you keep adjusting your entry on next green candle low. Once filled keep the SL at the high of that green candle. Keep the target atleast 2 times your risk. If SL is hit, never try to enter again until Supertrend flips its signal. even if we miss some profitable move.
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Good answer, could you please elaborate. I’m not very clear.
Dude, appreciate your answer. Thanks for answering. I have not understood it fully, not very clear. Can you please elaborate or explain in detail, a figure or bitmap image would be more convenient. Thanks in advance.