Triple Supertrend with EMA and ADX strategy

The Triple Supertrend with EMA and ADX strategy indicator combines three Supertrend levels with optional trend and momentum filters to identify high-probability trend reversal and continuation setups.

Usage

The strategy is designed to identify confluence across three different Supertrend settings. A trade is initiated when all three Supertrends align in the same direction.

• Long Entry: Occurs when all three Supertrend components turn positive (bullish). If the ADX & EMA filter is enabled, the price must also be above the EMA, and the ADX must be above the user-defined threshold.
• Short Entry: Occurs when all three Supertrend components turn negative (bearish). If the ADX & EMA filter is enabled, the price must be below the EMA, and the ADX must be above the threshold.
• Exits: Positions are closed when the fastest Supertrend (ST 1) reverses direction, allowing for a trailing exit strategy that preserves gains.
• Re-entry: The "Allow Reentry" toggle controls whether the script can trigger consecutive entries in the same direction if exit conditions were met but the overall trend remains valid.

Details

This script utilizes a multi-layered approach to trend following:

1. Supertrend Confluence: By using three separate Supertrend instances with increasing multipliers and lengths, the strategy ensures that short-term, medium-term, and long-term trends are in sync before a signal is generated.
2. Trend Filtering: The Exponential Moving Average (EMA) acts as a global trend filter to ensure trades are taken in the direction of the primary trend.
3. Volatility/Momentum Filtering: The Average Directional Index (ADX) ensures the market is in a sufficiently strong trending state, helping to filter out "whipsaws" or sideways price action.

Settings

ST 1 / 2 / 3

• ATR Multi: The multiplier used to calculate the Supertrend distance from price. Higher values result in wider bands.
• ATR Length: The lookback period for the Average True Range calculation within the Supertrend.

Indicators

• EMA Length: Sets the period for the Exponential Moving Average filter.
• ADX Length: Sets the lookback period for the ADX calculation.
• DI Length: Sets the lookback period for the Directional Index (+DI/-DI).
• ADX Filter: The minimum ADX level required to validate an entry when the filter is active.

Options

• Add ADX & EMA Filter: Enables or disables the additional EMA trend and ADX momentum requirements for entries.
• Allow Reentry: Determines if the strategy can re-enter a trade in the same direction before an opposite signal is triggered.

FAQ

How do I access Triple Supertrend with EMA and ADX?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Can I use this for scalping or swing trading?

Yes, by adjusting the ATR Multipliers and EMA lengths, you can tune the strategy for lower timeframes (scalping) or higher timeframes (swing trading).

What causes a trade to exit?

The trade exits as soon as the first (fastest) Supertrend line changes its direction, acting as a sensitive trailing stop.