Super Trend Pullback Method (still developing - ideas appreciated!)

[Marbo]

Hi Forum,

usually I like trading only with horizontal zones but in the last time the Super Trend Indicator and me became pretty good friends. There are several ways to use it but I concentrated on pullbacks to the Super Trend Line. I have the problem that I overtrade very easily and therefore I needed an indicator which informs me, when price approaches the Super Trend.

You see in the Headline that I wrote "Method" instead of "System" because it is not a system, it is just an idea, a beginning - and I hope that we can collect more useful ideas to develop a system with easy understandable rules. In my opinion there will always be some discretion in any method but I want to try to keep the interpretation level as low as possible.

I think the charts and the comments on it speak for themselves but here are some basic information about it:

When Super Trend is green, we only look for longs near the Super Trend Line which are indicated by the blue arrows. Shorts are only taken when the Super Trend is red and red arrows appear.

To make it clear: AN ARROW IS NOT(!) A LONG OR SHORT ENTRY SIGNAL !!

An arrow only shows that price is approaching the Super Trend Line and MAYBE there will be an entry. The entry itself is based on price action. When price comes near to a green Super Trend Line I wait for something that shows me that it will bounce off the Line. That can be a bullish candlestick formation or a break of a trendline in smaller timeframes, a pinbar/hammer (which is my favourite)..

Now you may ask how close must price come to the Super Trend Line that an arrow appears. Coders will see that I use the Average True Range for that. It may not be the best idea for that but it was my first. Any improvements or ideas are welcome!

The Exit is also something needing development. I exit at horizontal levels, CRV 2 or just feeling. There is no rule and maybe we find some useful exit strategies together.

Something to the arrows:

At the moment an arrow is printed above/below every bar where the criteria are met. But don't care, just notice the first arrow appearing because that means that price comes close to the Super Trend and then wait for price action to enter the trade.

I recommend using this method not on the very small timeframes. I use it on M15 and H1.

By the way, there are way too many arrows. Without a basic knowledge about price action I doubt it will work. I use it more as a filter for possible entries.

Improvements and ideas are very welcome!

Attached you find the template and indicators.

[test]

Thanks for sharing the system

[Marbo]

Like I said, that is not a trading system. This is more a kind of filter. Hopefully it becomes a system when we collect some ideas here..

GBPUSD doing a pullback to the Super Trend right now. Timeframe M15. But still no price action indicating that it will bounce off and reverse. Maybe it breaks the Super Trend and continues long or price will form some kind of pattern which allows me to go short. When I go short, I keep an eye on the Super Trend H1 because it could bounce off there. Shorting the M15 would be against major trend. Therefore don't expect the big move. Stay strict with your moneymanagement.

[Marbo]

A short word to the moneymanagement: At around 1.6105 you see support. A horizontal zone and the Super Trend H1 support. This is means my expectiation are maxmimum 35 pips. The initial stop loss is above the high (around 15 pips). So the RR is still ok. Always look for a RR > 1 !! The 1.6105 area is just a thought! It may be that it will break, it may be that GBPUSD reverses earlier. But that makes the most sense to me right now.

The current candle closes in 5 minutes and I doubt that I will take the trade because it is pretty large now. That will increase the stop loss and decrease the potential profit. So better wait for the next chance.