What is SuperTrend+ + CCI Tradingview Indicator?
An indicator is a technical tool used in financial markets to assist traders in making informed decisions. Indicators are based on mathematical calculations that analyze historical price data to help traders identify trends, reversals, and entry/exit points for trades. On platforms like TradingView, indicators play a crucial role in enhancing technical analysis, guiding traders towards profitable trades.
TradingView, a leading charting platform, provides traders access to a wide range of built-in indicators. Additionally, users can create custom indicators using Pine Script, a programming language unique to TradingView. In this article, we will focus on an effective trading strategy that uses the SuperTrend+ and CCI (Commodity Channel Index) indicators.
How is SuperTrend+ + CCI Tradingview Indicator work on Tradingview
The combination of SuperTrend+ and CCI indicators forms a robust strategy for breakout trades. This strategy is designed to identify optimal buy and sell signals during pullbacks, allowing traders to capitalize on price reversals in trending markets.
1. SuperTrend+ by Electrified
The SuperTrend+ indicator is an enhanced version of the popular SuperTrend indicator. It helps traders determine the prevailing market trend. When the price is above the SuperTrend+ line, the market is considered to be in an uptrend. Conversely, when the price is below the SuperTrend+ line, the market is in a downtrend.
The SuperTrend+ indicator uses two main components to calculate its values:
- ATR (Average True Range): It measures market volatility. A higher ATR indicates greater market volatility, while a lower ATR suggests a more stable market.
- Multiplier: This defines the distance between the price and the SuperTrend line, allowing traders to adjust the indicatorβs sensitivity.
2. CCI (Commodity Channel Index)
The CCI is a versatile momentum indicator that helps identify cyclical trends in a market. It compares the current price to a moving average over a specific period, indicating whether an asset is overbought or oversold. CCI values above +100 suggest an overbought condition, while values below -100 indicate an oversold condition.
In the context of the breakout strategy, CCI helps traders determine the strength of a pullback. A value below -100 signals a possible reversal, providing a good entry opportunity for a buy trade.
The Breakout Strategy Setup: Combining SuperTrend+ and CCI on TradingView
To use this strategy effectively on TradingView, the SuperTrend+ and CCI indicators are combined in a trading setup that aims to capture breakouts during pullbacks. Hereβs how the strategy works:
Buy Setup:
- SuperTrend+: First, the price must be above the SuperTrend+ line, indicating an uptrend.
- CCI: The CCI must be below -100, signaling that the price has experienced an oversold condition and is ready for a potential reversal.
- Buy Trigger: A buy signal occurs when the CCI crosses above -100 and the price closes above the most recent bearish candlestick.
The rationale behind this setup is that when the CCI moves from oversold to neutral, combined with the price staying above the SuperTrend+ line, it indicates the potential for the market to continue its upward trend after a pullback.
Stop Loss (SL):
The Stop Loss is set just slightly below the SuperTrend+ line, acting as a dynamic support level. The distance from the entry point to the stop loss determines the risk taken for the trade.
Risk-to-Reward (RR) Ratio:
For an optimal risk-to-reward ratio, a common value is 1.5. This means the trader aims to make 1.5 times the risk taken on the trade. For example, if the stop loss is 50 pips away from the entry, the target would be set 75 pips above the entry point.
Sell Setup:
The sell setup works in a similar way to the buy setup, but in reverse. Hereβs how the sell strategy unfolds:
- SuperTrend+: The price must be below the SuperTrend+ line, indicating a downtrend.
- CCI: The CCI must be above +100, suggesting that the price is overbought and due for a pullback.
- Sell Trigger: A sell signal occurs when the CCI crosses below +100 and the price closes below the most recent bullish candlestick.
This setup takes advantage of potential reversals when the market is overbought and is likely to continue its downtrend.
Stop Loss (SL):
As with the buy setup, the stop loss is placed slightly above the SuperTrend+ line in a downtrend, offering dynamic resistance.
Risk-to-Reward (RR) Ratio:
Again, the 1.5 RR is applied, meaning the target profit should be 1.5 times the distance from the entry point to the stop loss.
Conclusion
Using TradingView with Pine Script, traders can create powerful strategies like the breakout strategy that combines SuperTrend+ and CCI. This strategy helps traders identify optimal entry and exit points, enhancing the potential for profitable trades. By understanding how each indicator works and how to integrate them effectively, traders can gain a better understanding of market conditions and make more informed decisions. Whether you’re a beginner or an experienced trader, incorporating this strategy into your trading plan can provide valuable insights for market trends and breakouts.
Pinescript of SuperTrend+ + CCI Tradingview Indicator
Contact us at +91 7620658346 to get access to this indicator. We specialize in custom algorithm development for TradingView, MT4/MT5, and trading bots.
For updates, follow @algo_aakash on Instagram, YouTube, and Twitter.
Disclaimer
The information in this article and any associated indicators is for educational purposes only. Trading in financial markets carries a high level of risk, and there is no guarantee of profit. The custom Bollinger Band strategy is based on historical data and technical analysis, which may not predict future market trends. Users are encouraged to conduct their own research, assess their risk tolerance, and consult with a licensed financial advisor before making any trading decisions. The author and developer of this indicator are not responsible for any losses incurred through its use. Please trade responsibly.
0 Comments