Super Trend 2 MACD

The Super Trend 2 MACD indicator provides a comprehensive trend-following strategy by combining multiple SuperTrend instances with MACD-based momentum confirmation to identify high-probability entry points.

Usage

The Super Trend 2 MACD script can be used to identify potential market reversals and trend continuations. It employs two distinct SuperTrend calculations: a local trend based on the current chart timeframe and a "Main" SuperTrend derived from a higher timeframe (HTF).

• Long Entries: Occur when the local SuperTrend flips to bullish while the higher timeframe SuperTrend is already bullish, further confirmed by the MACD line being above the signal line.
• Short Entries: Occur when the local SuperTrend flips to bearish while the higher timeframe SuperTrend is already bearish, further confirmed by the MACD line being below the signal line.

Visual arrows on the chart highlight these entry conditions, while the two SuperTrend lines help visualize support and resistance levels across different timeframes.

Details

The script calculates the MACD using the difference between two Simple Moving Averages (SMA) rather than Exponential Moving Averages (EMA). The SuperTrend component utilizes the Average True Range (ATR) to calculate volatility-based bands around the median price (HL2).

A key feature of this tool is the inclusion of a multi-timeframe (MTF) SuperTrend using the request.security function. This allows the indicator to filter out "noise" on lower timeframes by ensuring the trade direction aligns with the broader market trend established on the 120-minute (or user-defined) timeframe.

Settings

MACD Settings

• Source: The price source used for MACD calculations (default is Close).
• MACD Fast MA: The period for the fast Simple Moving Average.
• MACD Slow MA: The period for the slow Simple Moving Average.
• MACD Signal Line MA: The period for the signal line SMA.

SuperTrend Settings

• Main SuperTrend Time Frame: The timeframe used for the higher-level trend filter.
• SuperTrend Factor: The multiplier used to determine the distance of the bands from the price.
• SuperTrend Period: The lookback period for the ATR calculation.

Strategy Settings

• Take Profit: The target profit level in ticks/points for the strategy tester.
• Stop Loss: The stop loss level in ticks/points for the strategy tester.

FAQ

How do I access Super Trend 2 MACD?

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

What is the purpose of the "Main SuperTrend"?

The Main SuperTrend acts as a trend filter from a higher timeframe, ensuring that signals are only taken when the short-term momentum aligns with the long-term trend.

Can I change the sensitivity of the signals?

Yes, by adjusting the SuperTrend Factor and Period, you can make the indicator more or less sensitive to price fluctuations. Higher factors typically result in fewer, more stable signals.