SuperTrend Entry

The SuperTrend Entry indicator provides a systematic framework for entering the market, automatically calculating stop loss levels, take profit targets, and recommended position sizes based on account risk.

Usage

The Usage section focuses on identifying trend shifts and managing risk per trade. When price closes above the SuperTrend line, bullish momentum is detected; conversely, a close below the SuperTrend indicates bearish momentum. This tool automatically colors bars to reflect the current momentum and highlights specific "Momentum Switch" bars where the trend changes.

Traders can use the calculated levels to set systematic exits. For a buy signal, the indicator identifies a stop loss based on the recent low (or lowest close) and projects a take profit level based on a user-defined risk-reward ratio. The on-screen dashboard provides the exact position size to use based on your account equity and desired risk percentage, eliminating manual calculations.

Details

The indicator is built upon the SuperTrend formula, which utilizes the Average True Range (ATR) to determine volatility-adjusted trend direction. It tracks the duration of the current trend to identify significant highs and lows for stop-loss placement. The risk management module incorporates a fixed spread and an adjusted ATR multiplier to ensure that stop levels account for market noise and trading costs.

Settings

Smart Momentum

• Factor: Determines the sensitivity of the SuperTrend calculation. Increasing this reduces signal frequency.
• ATR Period: The lookback period for the Average True Range used in the trend calculation.

Momentum Colors

• Smart Overlay: Toggles the candle coloring based on momentum.
• Momentum Switch: Highlights the specific candle where the trend direction changed.

Stops and Targets

• High & Low or Highest Close & Lowest Close: Determines the reference point for calculating stop losses.
• Stop Loss Multiplier: Adds a volatility-based buffer to the stop loss level.
• Take Profit Multiplier: Sets the target price based on a multiple of the risk (e.g., a value of 2 sets a 1:2 risk-reward target).

Money Management

• Account Size: Your current account balance used for position sizing.
• Bet Percentage: The percentage of the account you wish to risk on a single trade.
• Spread: Adjusts the position size and exit levels to account for broker spreads.

Entry Table

• Table Size: Adjusts the visual scale of the on-screen information dashboard.
• Table Position: Changes the location of the dashboard on the chart.

FAQ

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

Can I sync this with other SuperTrend tools? Yes, by keeping the Factor and ATR Period inputs identical across different indicators, you can ensure they are analyzing the same momentum data.

What does the "Position Size" value represent? It represents the volume (e.g., lots or units) you should trade to ensure that hitting your stop loss results in a loss exactly equal to your specified "Bet Percentage".