Supertrend-Strategy_Basic version

The Supertrend-Strategy_Basic version indicator provides a comprehensive framework for trend-following and mean-reversion trading by integrating Supertrend, RSI, and EMA filters.

Usage

The script offers two primary modes of operation which can be selected in the settings:

Simple Strategy In this mode, the script generates signals based on the standard Supertrend trend flips. A long signal is generated when the price crosses above the Supertrend line, and a short signal is triggered when it crosses below.

Pullback Strategy This mode looks for corrective moves within an established trend.

• Long Entry: Occurs when the price is already in an uptrend (above Supertrend), the low of a candle crosses below the Supertrend line, and a subsequent candle's high breaks above the high of the pullback candle.
• Short Entry: Occurs when the price is in a downtrend (below Supertrend), the high of a candle crosses above the Supertrend line, and a subsequent candle's low breaks below the low of the pullback candle.

Details

The strategy employs three distinct layers of validation to ensure higher probability setups:

1. Trend Identification (Supertrend): Based on the Average True Range (ATR), this defines the immediate market direction and provides dynamic support/resistance levels.
2. Momentum Filtering (RSI): Filters signals based on relative strength. For example, long trades are only permitted when the RSI is above a specific threshold (e.g., 50) to ensure positive momentum.
3. Trend Confirmation (EMA): Uses a long-term Exponential Moving Average (default 200) to ensure trades align with the broader market context.

Settings

Choose Strategy

• Type Of Strategy: Switches between 'Simple' (trend flip) and 'Pullback' (rebound) logic.

Supertrend Settings

• ATR Length: The lookback period for the Average True Range calculation.
• Factor: The multiplier applied to the ATR to set the distance of the Supertrend line from the price.

Ema Settings

• Ema Condition On/Off: Enables or disables the EMA trend filter.
• Ema Length: The period for the long-term trend filter (e.g., 200).
• Ema Source: The price source used for EMA calculation.

Rsi Settings

• Rsi Condition On/Off: Enables or disables the RSI momentum filter.
• RSI Source/Length: Parameters for the RSI calculation.
• RSI BUY/SELL Level: Thresholds required to validate entry signals.

Sl/Tp Settings

• Stop Loss %: Sets a fixed percentage-based stop loss from the entry price.
• Take Profit %: Sets a fixed percentage-based take profit from the entry price.

FAQ

How do I use the Pullback mode?

Set the "Type Of Strategy" to "Pullback". This will wait for the price to "touch" the Supertrend line and then recover before entering, rather than just entering on the first trend flip.

Can I trade only in one direction?

Yes, under the "Trade Direction" group in settings, you can select "Long", "Short", or "Both" to restrict the strategy to specific trade types.

How do I access Supertrend-Strategy_Basic version?

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