Power of Trading
A trading strategy combining Super Trend and Trend Ribbon is shared. When Super Trend changes, buy or sell orders are placed depending on the color of the Hull Suite and Trend Ribbon. Examples of trades are given, and the setup for the indicators is explained.
Unique Trading Strategy: Combining Super Trend and Trend Ribbon
Introduction
As a trader, it is essential to have a good trading strategy that yields consistent profits. In this article, we will discuss a unique trading strategy that combines two popular indicators, Super Trend and Trend Ribbon. This strategy is primarily employed by traders and analysts to indicate possible long-term uptrend or long-term downtrend conditions in a market. We will break down the strategy step by step and show you how to implement it in your trading.
Super Trend and Trend Ribbon Indicators
The Super Trend indicator is a popular technical analysis tool used to identify the direction of the trend. It is a combination of two indicators, ATR (Average True Range) and a moving average. The Trend Ribbon indicator is another tool used to identify the trend direction. It consists of a series of colored lines that change color depending on the trend direction.
Trading Strategy
When the Super Trend changes into an uptrend, the whole suite line should be of green color, and the Trend Ribbon should also be of green color. If these conditions are fulfilled, we will place a buy order. Our stop-loss order will be placed at the baseline below, and our risk to reward ratio is 1:2. We should never trade against the trend.
On the other hand, when the Super Trend changes into a downtrend, the Trend Ribbon should be of red color, and the whole suite line should be of red color. If these conditions are fulfilled, we will place a sell order. Our stop-loss order will be placed at the whole suite line above, and our risk to reward ratio is 1:2.
Examples of Trades
Let us now look at some examples of trades using this strategy. We will examine the one-day chart of EUR/GBP.
In the first example, the Super Trend changes into an uptrend, the whole suite line is green, and the Trend Ribbon is green. Thus, all the conditions have been met, and we will place a buy order with a stop-loss at the baseline below and a risk to reward ratio of 1:2. The trade is successful, and we win.
In the second example, the Super Trend changes into a downtrend, the whole suite line is red, and the Trend Ribbon is red. Again, all conditions have been met, and we will place a sell order with a stop-loss at the whole suite line above and a risk to reward ratio of 1:2. This trade is also successful.
In the third example, the Super Trend changes into an uptrend, and the whole suite line is green, and the Trend Ribbon is green. However, as the market is very volatile, we decide not to trade in this signal and wait for the next one.
Setting Up the Strategy
Now we will show you how to set up this trading strategy. First, we need to search for Whole Suite in the TradingView search box and click on the Hull Suite option. Here, we need to change the ATR period to 60 and length multiplier to 3 from 1. We also need to change the line thickness from 1 to 15.
Next, we need to add the Donkey and Trend Ribbon indicator to the chart. We can search for this indicator in the TradingView search box and click on the Donkey and Trend Ribbon option. We need to change the ATR period to 30 from 20.
Finally, we need to add the Super Trend indicator to the chart. We can search for this indicator in the TradingView search box and click on the Super Trend option. Here, we need to change the ATR period to 40, and the ATR multiplier to 3 from 5.1.
Conclusion
This trading strategy can be an effective way to identify the trend direction and place profitable trades. By combining the Super Trend and Trend Ribbon indicators, traders can gain a better understanding of the market conditions and make informed trading decisions. Remember to always follow the trend, place stop-loss orders, and use a risk to reward ratio of 1:2. Happy trading!
