Supertrend Indicator

Supertrend Indicator

The Supertrend Indicator for MT5 is a powerful non-repaint trend indicator designed to help traders identify market direction, trend reversal points, and price strength across forex, stocks, indices, and commodities. Unlike many repainting tools, the Supertrend indicator applies a single dynamic trendline that shifts color only when the market genuinely changes direction. This makes it a reliable tool for new and experienced traders.

Understanding the market trend is essential for profitable trading. But recognizing direction alone is not enough—you must also evaluate trend strength, volatility, and potential reversal zones. The updated version of the Supertrend Indicator for MT5 provides all of this in a clean, easy-to-read visual format.

How the Supertrend Indicator Works on MT5

The Supertrend indicator bases its levels on two key inputs: Nbr Period and Multiplier. These values determine how the indicator reacts to price volatility. The indicator can be displayed in two styles in MT5:

Signal line version

Filled area version

Market conditions shift based on the price’s position relative to the Supertrend level:

Price above Supertrend line → BULLISH → line turns green

Price below Supertrend line → BEARISH → line turns red

During bullish conditions, the Supertrend level acts as dynamic support. Conversely, during bearish conditions, it behaves as dynamic resistance. This makes it extremely useful for spotting trend continuation as well as trend reversal opportunities.

Inside Bars and Sideways Market Conditions

When analyzing charts, you will often notice that the Supertrend line does not move with every single candle. Instead, it sometimes forms horizontal levels, indicating the market is printing an inside bar or failing to break the previous candle's high or low.

This behavior signals market slowdown or sideways consolidation.

How to Trade Sideways Movements

During sideways markets:

Wait for a strong breakout in either direction.

Enter SELL positions when price breaks down during a bearish environment.

Enter BUY positions when price breaks above the Supertrend resistance level.

This approach helps avoid premature entries and false signals.

How to Trade Forex and Stocks Using Supertrend (MT5 Guide)

Trading with the Supertrend indicator involves simple rules:

1. Buy Signal (Bullish Trend)

Open a BUY trade when:

Price closes above the Supertrend line

Supertrend color turns green

Stop Loss:
Place SL at the Supertrend line (acts as support).
Use the line as a trailing stop as price progresses upward.

Exit:
Close the trade when price breaks below the Supertrend line (indicator turns red).

2. Sell Signal (Bearish Trend)

Open a SELL trade when:

Price closes below the Supertrend line

Supertrend color turns red

Stop Loss:
Place SL at the red Supertrend level (acts as resistance).
Use it as a trailing stop during the downtrend.

Exit:
Close the trade when price breaks above the Supertrend line (indicator turns green).

Why Supertrend Works Well for Intraday and Swing Trading

The Supertrend indicator acts like an advanced form of moving average, providing:

Clean trend direction

Accurate trend reversal alerts

Clear stop-loss guidance

Reliable trailing stop structure

Because it responds to volatility, it is especially effective for:

Intraday trading (M5, M15, M30, H1)

Day trading forex and stocks

Swing trading on H4 and Daily charts

Both beginners and professional traders can integrate Supertrend with their trend-following strategies for better decision-making.

Conclusion

The Supertrend Indicator for MT5 is a non-repaint, simple, and highly effective tool for identifying trend direction and reversal points. With its clear visual cues and strong trend-following logic, it works well across forex, equities, indices, and commodities. Because of its adaptability, traders can combine it with oscillators, support/resistance, or price action to create highly reliable setups.

Download this indicator today from IndicatorForest.com and enhance your trading accuracy with precise trend signals.