Gold Supertrend Strategy

On TradingView: Search 'Supertrend' in indicators and add it. Default settings are ATR 10, Multiplier 3. On ThinkorSwim: Add study 'Supertrend.' Most platforms have Supertrend built in - Just search for it.

Green line = Uptrend, plots below price as support. Red line = Downtrend, plots above price as resistance. When color changes, it signals a trend reversal. You want to be long with green, short with red.

No. Filter signals using: 1) Higher timeframe alignment, 2) ADX > 20 (trending market), 3) 50 EMA alignment. Trading every signal leads to whipsaws in ranging markets. Quality over quantity.

Daily is best for most traders - Good signal quality, reasonable frequency. 4H is good for more active trading. Weekly for position trading. Avoid 1H or lower until experienced - More noise and whipsaws.

Your stop loss IS the Supertrend line. When long, stop at green Supertrend level. As Supertrend rises, trail your stop with it. This gives you a volatility-adjusted trailing stop automatically.

Use filters: 1) Check ADX - If below 20, market is ranging (high whipsaw risk), 2) Add 50 EMA filter, 3) Use multi-timeframe alignment, 4) Increase multiplier in choppy conditions (3 → 3.5 or 4), 5) Wait for pullback entry instead of signal entry.

After a Supertrend signal, wait for price to pull back and test the Supertrend line. Enter on reversal candle at that level. Use pullback entry in moderate trends or choppy conditions for better price and tighter stop. In strong trends, use signal entry to avoid missing the move.

Use higher TF (Daily) for overall direction, lower TF (4H) for entries. Only take 4H signals that match Daily direction. This filters counter-trend trades and significantly improves win rate. Skip signals that conflict with higher TF.

Standard 10, 3 works well for most conditions. Only adjust if: Choppy market → Increase multiplier to 3.5-4. Strong trend → Decrease to 2.5. Don't over-optimize. Test any changes before live trading.

Use two Supertrends: Fast (ATR 7, Mult 2) and Slow (ATR 10, Mult 3). Trade only when both are same color. Both green = Strong buy. Both red = Strong sell. Mixed = No trade. This confirms signals and reduces false entries.

Define: 1) Trend filter (Daily ST direction), 2) Regime filter (ADX > 20), 3) Signal (4H ST color change), 4) Entry (signal close), 5) Stop (ST level), 6) Exit (opposite signal or 1:2 R:R). Backtest on 3+ years. Expect 50-60% win rate, 1.4-1.8 profit factor.

Monitor ATR vs 50-day average. If ATR > 1.5x average (volatility expansion), increase multiplier. If ATR < 0.7x average (contraction), decrease multiplier. Also check ADX - Below 20 consider pausing Supertrend altogether. Review weekly.

Buy calls on green signal, puts on red. Use 3-6 week expiration for daily signals. ATM or 1 strike OTM. Exit on opposite signal. For defined profit, use spreads (bull call on green, bear put on red). Options avoid stop-hunting issues.

Gold and DXY are inversely correlated. Gold ST green + DXY ST red = Strong confluence (dollar weak, gold bullish). If both are same color, it's conflicting - Reduce size or wait for alignment.

With filters (MTF alignment, ADX, MA): 55-65% win rate, 1.4-1.8 profit factor. Without filters: 45-55% win rate, 1.2-1.4 profit factor. Trending markets outperform ranging. Max drawdown typically 15-20%. Edge shows over many trades.